January 13, 2022, 1:32 pm EST
Marvelous Performance of 16X Gains
The featured chart shows the marvelous performance of 16X or 1600% gains of Nasdaq-100 (QQQ) for this bull cycle since March 2009. Similarly, the semiconductor sector (SMH) achieved a near 20X return for the same period. It illustrated how powerful the long-term investment could be if entering the right time for the full bull cycle. Mathematically, it turned 100K investment in index ETF into millions in 12 years with a single trade.
Of course, it is extremely difficult or near impossible for someone to hold the positions through 5X, 10X without attempting to take the profits. However, it still shows the possibility of long-term investment.
But, what is the lesson for us today on QQQ or technology-focus investors? It should serve us as a reminder of the potential risks rather than chasing them. Indeed, the chance to climb higher for the next few years becomes much lower. The risks of correction or bear cycle can easily beat it up badly because of its high valuation.
Another important lesson is to watch and catch the next big fish in another area. We believe that there are other chances available regardless of the bull or bear markets. We are committed to figuring it out with those who have the same goals.