“`html
The Nasdaq Composite has entered its seventh bull market since 1990, rebounding 47% since its low of 24% below a previous record high on April 8, 2023. Historically, the Nasdaq has returned an average of 281% during prior bull markets, achieving these gains over an average of 1,817 days, which translates to an annualized return of approximately 31%.
The Nasdaq-100 index currently trades at 35 times earnings, significantly higher than the 10-year average of 26 times earnings. Given this elevated valuation, future returns may not align with historical trends.
Invesco QQQ ETF, which tracks the Nasdaq-100, has provided a return of 1,330% since its inception in 1999, equivalent to an annual return of 10.5%. The ETF’s expense ratio is 0.2%, translating to $20 annually for every $10,000 invested.
“`
