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December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review

Nasdaq 5000 Here We Come

By Steven Goldberg





The index should soon set a record because itís loaded with established, attractively priced technology stocks. An even better way to play the group is through my favorite tech ETF


JewishWorldReview.com | Don't look now, but the Nasdaq Composite index, which is dominated by technology stocks, recently set a 14-year high, closing March 5 at 4358. But it's the only major U.S. stock index that hasn't established a new record this year. Which makes me wonder: Have investors learned the lessons of the tech bubble too well? Plenty of tech stocks look attractive to me at current levels, and the tech sector is likely to grow robustly in the coming years. But the tech crash early this century was so terrible that many investors still won't touch these stocks.

It's important not to forget how we got here. Everyone knows how crazy investors acted in the late 1990s and early 2000. Many tech stocks traded at triple-digit price-earnings ratios and double-digit price-to-sales ratios. Many Internet start-ups with high-flying stocks had no profits and sometimes no revenues. They were priced based on the number of people who visited their Web sites.

Tech mania was in its fullest flower by the time the Nasdaq index peaked at 5049, on March 10, 2000. The rest, as they say, is history.

Owners of tech shares suffered a two-year battering, during which the Nasdaq Composite plunged 78% before bottoming at 1114 on October 9, 2002. By contrast, Standard & Poor's 500-stock index lost 47% during the 2000-02 bear market. The damage to tech investors' bank accounts and psyches was awesome.

Doug Ramsey, chief investment officer of the Leuthold Group, a Minneapolis-based investment-research firm, has an intriguing theory. He says that after a speculative bubble and subsequent crash, the affected stocks tend to bump along the bottom for years. But at some point they finally regain momentum--and that's the time to hop on board.

Tech stocks bumped along the bottom in 2003, bounced a bit in 2004, then declined again. It wasn't until mid 2009 that tech stocks broke above their 2004 levels, Ramsey says. Twice since then the stocks retreated to their 2004 highs, and both times they rebounded. Those are both bullish signs.


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Now, I'm not huge fan of basing decisions on charts and patterns, but Ramsey cites other reasons to buy tech stocks. Among them, relatively low valuations compared with other sectors, and disciplined capital allocation by tech executives--a marked change from the late 1990s. Nowadays, many of these companies are awash in cash.

Just how reasonably priced are these stocks? First, in the interests of full disclosure, Nasdaq is about half tech and telecom; it's not the best tech index. I use it because it's the best-known index. For more precision, let's consider the technology sector of the S&P 500, which holds 65 tech companies, most of them large. You can invest in the sector through the Technology Select Sector SPDR ETF (XLK), an exchange-traded fund that charges just 0.16% annually.

Over the past five years through March 14, the tech SPDR returned an annualized 21.3%--about the same as the S&P 500. The sector doesn't look overpriced. It trades at 16imes analysts' estimated earnings for the coming 12 months, and it yields 1.9%The S&P 500 trades at 15 times estimated earnings and yields 2.2%.

What's more, over the past three years, the ETF has exhibited about the same volatility as the S&P as a whole. That's a sea change from the tremendous volatility tech stocks displayed in the 1990s and during their crash.

The ETF is dominated by established companies, not flashy start-ups. Its top holdings are Apple (AAPL), Google (GOOG), Microsoft (MSFT), Verizon Communications (VZ), International Business Machines (IBM), AT&T (T), Oracle (ORCL) and Qualcomm (QCOM). These are high-quality companies that, for the most part, should thrive for years to come.

What's also reassuring is that you can find tech stocks in the portfolios of top-drawer value funds that shunned them in the late 1990s, such as BBH Core Select (BBTEX), FPA Crescent (FPACX) and Oakmark (OAKMX). (Note that FPA Crescent is a member of the Kiplinger 25 and that BBH is closed to new investors.)

I don't think it will be too long before Nasdaq sets a new record. And this time I expect it to stay above 5000 and continue to grow.One caveat: I'm not talking here about some of the overhyped tech stocks, such as LinkedIn (LNKD), Netflix (NFLX), Salesforce (CRM) and Twitter (TWTR), which are every bit as insanely priced as most tech stocks were in the late 1990s.

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Steven Goldberg is a Contributing Columnist for Kiplinger.



All contents copyright 2013 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC

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