Adios! Nasdaq, We’ll See You In the Next Bull Market
The breakdown -7% of Google (GOOGL) and Microsoft (MSFT) seem to say goodbye to these big tech names after their earning reports.
Meta Platforms (META) will report earnings today after the market close. Apple (AAPL) and Amazon (AMZN) will report their earnings tomorrow. These five stocks should give us a clear picture of where the future of Nasdaq will be. At this moment, Nasdaq’s future looks very bearish for its -30% down year-to-date 2022. It is much worse than S&P 500 -19% and Dow Jones -12%.
Obviously, it is not a good idea to own Nasdaq stock in the bear market. Because the owner will feel pressure to see his account shrink most parts of the bear cycle.
On the other hand, Dow Jones and S&P 500 have many stocks in healthcare, energy, material, and consumer staples sectors where they perform better than Nasdaq in the bear market due to their diversified and defensive nature.
We are in the early stage of the bear markets so we say “Adios! Nasdaq”. But, we will rejoin Nasdaq in the next bull market sometime in the future.