Joseph Grinkorn:“There’s no bubble on Wall-Street, The NASDAQ will increase by up to 15%”


Posted April 3, 2015 by jeassonjeasson

Joseph Grinkorn:“There’s no bubble on Wall-Street, The NASDAQ will increase by up to 15%”

 
New York, March13, 2015 - The NASDAQ index, which reached a record level last week that was seen only in the 2000’s with the dot-com bubble collapse, has potential to strengthen by up to 15% during 2015. The index, which crossed the 5000 point threshold and slowed down due to asset realizations, has not yet reached its peak level of 5048 points, but it is likely that it will record a higher peak level later in the year.

“Investors and risk lovers who want a high return should increase their exposure in the NASDAQ” recommends Joseph Grinkorn, Wall Street investment expert and Morris Group CEO in a recent interview.According to Grinkorn, Wall Street is celebrating 6 years of a long-term bullish market since 2009. The S&P 500 jumped by 200% since the lows in 2009 at the peak of the credit crisis, and the NASDAQ, which had reached a low of 1294 points in 2009 has since increased its value by almost 4x times with a profit yield of nearly 300%.

An important figure which according to Grinkorn illustrates why the current state of NASDAQ corporations is not a bubble, compared to the 2000’s, is the P/E ratio of companies compared to their earnings. Today, traded companies are valued at 20x times their earnings, in contrast to the situation in the 2000’s on the eve of the bubble; when NASDAQ traded companies were valued at 194x times their profits.
Grinkorn added that Apple, the leading company on Wall Street today, which is expected to move from the NASDAQ to the Dow Jones is currently valued at 17x times its earnings.
Other thanApple, which currently represents approximately 10% of the NASDAQ, new companies are expected to enter, such asAirBnB and Uber. These will generate "new blood" to the index. For these companies to reach bubble levels of the 2000’s, their valuation would need to be 10x times their current worth.

Grinkorn noted that the main growth engines of businesses in the NASDAQ are social media companies, bringing new money into the market. Overwhelmingly, these companies have full cash funds and lack of significant debt. This situation reflects the state of a healthy and growing market, as opposed to the bubble which exploded in the 2000’s. Additionally, American oriented technology companies are expected to benefit further from the strengthening of the dollar and the continued recovery of the US market.

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The Morris Group Companies specializes in equity investments for private and public social media and technology companies, high return real estate investments and commercial / residential financing.
More information can be found at: www.Morris-Group.co


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Issued By The Morris Group Companies
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Categories Business
Last Updated April 3, 2015