Down 30%, Is It Safe to Invest in the Nasdaq Right Now?
From not-so-transitory inflation to geopolitical strife and supply chain disruptions, anxious investors have had plenty of excuses to push the Nasdaq Composite (NASDAQINDEX: ^IXIC) lower in 2022. Indeed, as the tech-heavy index sags 30% year to date, financial traders may wonder whether this, too, shall pass.
While it's never 100% safe to invest in anything, true contrarians should view the current tech wreck as a prime buying opportunity. A post-Thanksgiving attitude of gratitude, fortified with an understanding of what's rattling the markets in the first place, could provide the emotional wherewithal to stock up when stocks are down.
When Chinese President Xi Jinping secured an unprecedented third term, the Nasdaq buckled as traders collectively winced at the thought of restrictive policies that would linger longer. Those fears may have been vindicated recently as Beijing enacted a fresh wave of lockdowns amid reports of new COVID-19 cases.
Source Fool.com