Nasdaq: A Safe Investment Bet?

The Nasdaq 100 is an attractive prospect for investors, particularly those looking for a long-term investment in tech-focused companies. However, there are some risks to investing in the Nasdaq. In its nearly 50-year history, the Nasdaq Composite has only twice had two negative years in a row. The first was in 1973 and 1974, when it fell 31% and 35% in those years, respectively. The second was in 2001 and 2002, when the dot-com bust caused the market to become overvalued.

The Nasdaq Composite has only had two negative years in a row twice in its 50-year history

The Nasdaq Composite is a tech-heavy index, and investors should not be afraid of establishing a position in it. The companies inside the index also look attractive, and the tech-focused companies within it should make for an excellent long-term investment.

However, it is important to note that there may be certain stocks in the index to avoid. Investing in the larger index or the Nasdaq 100 via an exchange-traded fund (ETF) can help to mitigate some of the risks associated with individual stocks.

Overall, investing in the Nasdaq is generally considered safe, unless we are staring at a bubble situation or a deep recession.

The Nasdaq 100 has room to run in 2023

The Nasdaq 100 has surged 40% in 2023, marking a powerful recovery after its 33% plunge in 2022. Historical data suggests that the index could continue to climb for the remainder of the year. Since 1986, the Nasdaq 100 has only slumped in consecutive years on one occasion: during the dot-com tech bust from 2000 to 2002. After its other three annual declines – in 1990, 2008, and 2018 – the index immediately bounced back with a positive gain the very next year.

The average return in those rebound years was 52%. Given that the Nasdaq 100 is only up 40% in 2023 so far, that suggests there's potentially more upside on the table.

The Nasdaq 100 is home to 100 of the largest publicly listed technology companies on the Nasdaq exchange. As a result, it's often used as a barometer for the tech sector's performance.

The Nasdaq Composite has only had two negative years in a row twice in its nearly 50-year history. The first was in 1973 and 1974 when it fell 31% and 35% in those years, respectively. But on every other occasion, even during the Great Recession, the Nasdaq bounced back with a positive year after a negative year.

Therefore, the Nasdaq 100 has room to run in 2023, and investors shouldn't be afraid of establishing a position in it.

Tech-focused companies in the Nasdaq 100 are a good long-term investment

Investing in the Nasdaq is generally considered safe, unless there is a bubble situation or a deep recession. The Nasdaq Composite has only had two negative years in a row twice in its nearly 50-year history.

The Nasdaq has a history of bouncing back after negative years. Even during the Great Recession, the Nasdaq bounced back with a positive year after a negative year. This makes the Nasdaq a good long-term investment, as it has proven its ability to recover from economic downturns.

However, it is important to note that there may be certain stocks in the index to avoid. Investors should carefully consider their options and do their research before investing in the Nasdaq or any other stock market index.

The Nasdaq has always bounced back after a negative year, except for twice in its history

However, the Nasdaq 100 still has a lot of room to run in 2023, and investors shouldn't be afraid of establishing a position in it. The tech-focused companies within it should also make for an excellent long-term investment.

As always, there may be certain stocks in the index to avoid, or buy hand over fist, but investing in the larger index or the Nasdaq 100 via an exchange-traded fund (ETF) is generally considered safe.

Investing in the Nasdaq is generally safe, unless there's a bubble situation or deep recession

The Nasdaq 100 still has a lot of room to run in 2023, and investors shouldn't be afraid of establishing a position in it. The tech-focused companies within it should also make for an excellent long-term investment.

As always, there may be certain stocks in the index to avoid, or buy hand over fist, but investing in the larger index or the Nasdaq 100 via an exchange-traded fund (ETF) is a safer bet.

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