Party Like It's 1999: The Nasdaq Is Back With A Bang, Will 2023 Unfold The Same Way?

In January 1999, investors partied to the tune of skyrocketing tech stocks, 24 years later, investors are doing the same.

What Happened: The tech-heavy Nasdaq-100, tracked by Invesco QQQ Trust (NASDAQ: QQQ), had its best year ever at the turn of the millennium, giving investors 101.95% returns over the course of the year before the bubble burst in 2000, decimating the profits investors lapped up the year before.

On a monthly basis, in 1999, January warmed investors up with 14.02% returns.

Turning the page to 2023, the Nasdaq-100 is acting similarly to how it did before the bubble popped — doling out returns of 10.54% so far this month, and marking the best January performance for the tech-heavy index since 1999.

For investors fearing a 1999-like dot-com bubble in the tech sector this year, it should be noted that the 2000 crash was reminiscent of last year's bear market when tech stocks with sky-high valuations fell as much as 97% with the Nasdaq-100 falling 33%.

Some big banks, like Citigroup, predict this year will be a boon for those beaten-down tech stocks.

Read also: 10 Short Squeeze Candidates To Watch This Week

How did other indices perform in January 1999?

Data: macrotrends.net and Benzinga Pro

Now Read: Why These Analysts Are Warning Investors January Stock Market Rally 'Will Not Last'

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