History Says the Nasdaq Could Rocket Higher in 2024: 2 Magnificent Growth Stocks to Buy Now and Hold Forever
The Nasdaq Composite (NASDAQINDEX: ^IXIC) tumbled 33% in 2022 as recession fears rattled Wall Street, notching its worst annual performance since the Great Recession. The index has suffered a double-digit decline in a calendar year only nine times since its inception in 1971.
Historically, those drawdowns have come with a silver lining. The Nasdaq usually rebounds strongly during the 24 months following an annual decline. Specifically, following a one-year decline of at least 10%, the Nasdaq has returned a median of 52% over the next two years.
To add context, the index has advanced about 39% since the beginning of 2023. If the rise sticks to the median, the upside would be about 13% through the rest of 2024. Of course, past performance is never a guarantee of future returns. When the Nasdaq nosedived in 2022, the trigger was a global pandemic for which there was no historical precedent. So the index may not perform as expected this year.
Source Fool.com
