SINGAPORE (July 14): Morgan Stanley warns that a new tech bubble might be in the works, given how the fast and high tech stocks have gained in recent months. 

Back in March 2000, the tech-heavy NASDAQ Composite index surpassed the S&P 500. From 1995 to its peak in 2000, the NASDAQ rose 400% before the dot-com bubble burst in April that year. At the time, the index stood at 5,048.62 points, the first time it had closed above the 5,000 level. 

The NASDAQ, as of July 9 is up 17% year to date, while the broader index S&P 500 is down 2%. “That differential is wider than even at the height of the NASDAQ dot-com bubble in 2000,” says Andrew Slimmon, head of the applied equity advisors team at Morgan Stanley Investment Management.

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