Down 30%, Is It Safe to Invest in the Nasdaq Right Now?

The Nasdaq Composite Index -- along with the Nasdaq-100 Index, which the popular Invesco QQQ (NASDAQ: QQQ) ETF tracks -- is among the most closely watched, technology-focused U.S. stock indexes. Its influence on equity prices is so great that one might discern a chicken-and-egg dynamic in which the Nasdaq's component stocks influence the index's price movements.

However, a sharp downtrend in the index could also prompt traders to dump their individual tech stocks. Wall Street witnessed this dynamic in action when the Nasdaq lost roughly 30% of its value during 2022's first half. As investors flipped the emotional switch from risk-on to risk-off, gut checks and tough choices had to be made: Is it best to stay the course, lean into the negative sentiment, or abandon ship?

Now, in the wake of a dismal six-month performance, some due diligence just might uncover an opportunity for intrepid tech-market traders.

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Source Fool.com