NEW YORK (TheStreet) -- The Nasdaq closed 3.8% lower than its all time-high on Tuesday, the 15th anniversary of its record of 5,048.

The current market, however, and the market from the dot-com era are "completely different," said Kevin Kelly, chief investment officer of Recon Capital Partners. 

Back then, the Nasdaq traded with a price-to-earnings ratio of roughly 55. Today's forward PE ratio stands at just 16.7 times expected earnings, he reasoned. 

The fundamentals for the individual companies have improved as well, he said, citing the index's top-weighted stocks like Apple (AAPL) - Get Report, Microsoft (MSFT) - Get Report, Google (GOOGL) - Get Report and Qualcomm (QCOM) - Get Report. 

These companies have plenty of cash on the balance sheet and have the ability to return capital to shareholders. In fact, on Monday, Qualcomm announced that it will repurchase $15 billion worth of stock and boost its quarterly dividend by 14% to 48 cents per share. 

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"This market is really, really healthy," he added. In fact, the high valuations are coming mostly from the private market, with companies like Snapchat and Uber. 

As for which sectors investors should stick with, Kelly likes technology and health care. Specifically, he cited Gilead Sciences (GILD) - Get Report, which pays a dividend of 43 cents a quarter, has superior growth and has a low valuation. 

Starbucks (SBUX) - Get Report is another stock he likes. 

Investors have to be careful of the strengthening U.S. dollar, which will hurt earnings for companies with international businesses, he added. Because of the strong dollar, earnings estimates from analysts for the S&P 500 have declined for next quarter.