The Nasdaq Will Likely Soar in 2023. Here's 1 Surefire Growth Stock to Buy Before It Does
The 100 largest technology companies on the Nasdaq stock exchange are listed on the Nasdaq-100 Index. It took a pounding in 2022, sinking 33% as high-growth tech companies quickly fell out of favor with investors. Many individual technology stocks fell even further, resulting in the worst market downturn in more than a decade.
Yet these dark economic clouds hide a silver lining. A review of the yearly returns of the Nasdaq-100, dating back to its debut in 1985, reveals that only once has the index experienced back-to-back declines -- during the burst of the dot-com bubble between 2000 and 2002. What's more, the positive years following a decline have been particularly lucrative for investors, averaging gains of nearly 56%.
To be clear, challenges remain in 2023. These macroeconomic headwinds include historically high inflation, still-rising interest rates, and -- more recently -- a couple of high-profile bank collapses. That said, the data suggests that the Nasdaq could be poised for a remarkable comeback this year.
Source Fool.com
