History Says the Nasdaq Could Soar in 2023. Here Are 2 Growth Stocks to Buy Before the Rebound.
The Nasdaq Composite dropped 33.1% last year in response to soaring inflation and rapidly rising interest rates. Since its inception in 1971, the tech-heavy index has only fallen more sharply three times: It declined 35.1% amid the gasoline shortages of 1974, it declined 39.3% amid the dot-com bubble fiasco of 2000, and it declined 40.5% amid the global financial crisis of 2008.
In two of those three cases, the Nasdaq Composite rebounded sharply during the next year. In fact, the index produced an average return of 17.5% in 1975, 2001, and 2009. Also noteworthy, the index has only fallen in two or more consecutive years twice in history. That sends a very clear message: The Nasdaq has a very good chance of rebounding sharply in 2023.
Of course, past performance is never a guarantee of future returns, so investors should never bank on a rebound in any given year. But the Nasdaq has eventually recovered from every past downturn, and there is no reason to believe the current bear market will end any differently. That means long-term investors should treat the current situation as a buying opportunity.
Source Fool.com