The Nasdaq 100 index plunged 33% last year. But it has done the polar opposite in 2023, soaring by 38%, and we're not even halfway through the year. If there's one takeaway from this situation, it's that picking short-term movements in the stock market can be next to impossible.

But if you zoom out and look at the past 10 years, the Nasdaq 100 has delivered a total gain of 418%, or 18% per year on average. In fact, history shows the longer you remain invested in the market, the higher the probability you'll generate a positive return.

Buying an index fund (which is sometimes called passive investing) can be a great way to capture those steady, reliable gains. But investors with a more aggressive risk profile can outperform the broader market if they manage to pick the right individual stocks. 

Continue reading

Source Fool.com