Why Nasdaq 5000 will keep climbing: Najarian

After a 15-year wait, Nasdaq (^IXIC) 5,000 is finally official. Although the composite still has a few points to go before reaching its previous record of 5,048 the foundation is in place for more upward momentum, says longtime trader Jon Najarian, co-founder of OptionMonster and a Yahoo Contributor. “I like the market here, I don’t think valuations are stretched,” he says.

Get the Latest Market Data and News with the Yahoo Finance App

Part of Najarian’s bullish stance ties into the smartphone explosion. “That connectivity is really key to a lot of what’s driving the Nasdaq,” observes Najarian. Apple’s (AAPL) iPhone is an obvious driver, along with the companies that manufacture memory.  “The SanDisks (SNDK) of the world with the solid state memory and flash memory, that’s huge.  Every cell phone is packed with it, every iPad or [Amazon’s] Fire HD (AMZN) tablet is packed with that stuff.”

The wireless revolution is just part of the story.  The functionality of the internet is another driver. “In 2000, we were doing $ 4 billion worth of business online.  Now the number is in the hundreds of billions of dollars,” says Najarian, who predicts continued growth as the world moves towards being 100% mobile. “Instead of you being tethered to your desk, walking around with the same kind of computing power now that you had on a desktop in 2000, that’s huge.  It’s great for those retailers.  It’s great for Uber, Facebook (FB) and Tinder.”

You may also like...

Rules of Discussion on Why Nasdaq 5000 will keep climbing: Najarian

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is strictly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Members are requested to flag any violations to keep Forum Clean.
Loading comments …