David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: What is the NASDAQ Index?
David Marotta: The NASDAQ Composite Exchange is a cap-weighted index of every stock that's listed on the NASDAQ. It started back in 1971 and because most of the stocks listed on the NASDAQ are technology stocks, it is sort of a proxy for what technology stocks are doing. So, it went way up during the last half of the 1999s, it peaked in about March of 2000 and then in March of 2000 for the next couple of years, it lost about 78% of its value. So, the tech bubble is very much the NASDAQ bubble and the NASDAQ is a very volatile index because its mostly hi-tech stocks.