The Nasdaq’s record-breaking streak has investors wondering if the market is due for a correction. The index just surpassed its 20-day moving average for the 60th consecutive time, its longest run since February 1999.
Penny stocks like Opendoor Technologies Inc. have fueled the surge, with investors drawn to “story” stocks that offer an interesting pitch but little in the way of actual profits. This phenomenon bears a resemblance to the dot-com boom and bust of the late 1990s, when high-growth stocks continued to rise despite lack of profitability.
The market’s behavior raises concerns about a potential selloff ahead, as some warn that the Nasdaq’s streak may not be sustainable. With this in mind, investors are advised to remain cautious and monitor market developments closely.
Source: https://www.marketwatch.com/story/the-nasdaq-is-partying-like-its-1999-why-that-might-signal-a-stock-market-selloff-ahead-1c1835f0