
NASDAQ:QQQ
This summary was created by AI, based on 4 opinions in the last 12 months.
The Invesco QQQ Trust Series 1, represented by the symbol QQQ-Q, has garnered a mix of reviews from various experts, primarily pointing out its significant technology and communications exposure, which comprises around 45-50% of the S&P 500. While some analysts have suggested that investors should buy before the upcoming tech earnings report, citing expected strong performance, others caution that the trade is quite crowded, indicating a potential risk. Additionally, there is a belief that owning the index can be an efficient way to gain exposure to the sector, particularly as valuations have moderated, reflected in a PEG ratio close to one. However, the general sentiment stresses the importance of being cautious with tech exposure, particularly given market conditions where these stocks may not be priced cheaply anymore. For Canadian investors, alternative products like XQQ or ZQQ are recommended instead of converting CAD to purchase QQQ-Q.
Historically, this has outperformed the rest of the market from the middle of April through to the end of May. This partly has to do with its makeup. It is technology, which is when companies announce their new products. Also, a good chunk is biotech, and there are a lot of announcements from the biotechs that come into the market at that time as well.
The beginning of the NASDAQ run up began in the late 70s when we had the birth of the new economy, up to 2000. The NASDAQ came down and bottomed in 2002. There was then a commodity boom, but then the NASDAQ kind of fiddled diddled until we had our financial crisis in 2007. NASDAQ is now marching back to close to its all-time high. The big run up from 2009 is classified as the Echo Technology Boom. He expects the NASDAQ to take out the old top and go beyond that. This may be the last in the series, but it is going to go on yet.
Tracks NASDAQ stocks along with a little bit of biotechs and some financials. The NASDAQ tends to do well during a Santa Claus rally and outperforms the S&P 500. He is expecting this to last until January 23. A short-term trade, but definitely something to be taken advantage of.