Down 25%, Is It Safe to Invest in the Nasdaq Right Now?
No sector has been hit harder in this bear market than technology -- and technology stocks, by far, make up the bulk of the Nasdaq Composite index. It should come as no surprise then that the Nasdaq is down about 25% year to date, and the benchmark index has been in a bear market for most of 2022.
After the Nasdaq bounced back in July, gaining 12.4%, it fell back again in August, down 4.6%, and it has been heading south thus far in September. It is impossible to say with any certainty where the index will end the year, but many believe it still hasn't hit bottom, given the high valuations and the macroeconomic environment. Certainly, many investors are wondering if it's safe to invest in the Nasdaq right now.
The question of whether or not it is safe to invest in the Nasdaq depends on your risk tolerance, goals, investment horizon, and other personal factors. But generally speaking, there are two pieces of information that may help you make that decision.
Source Fool.com
