Up 9.6% in 2023, Is It Safe to Invest in the Nasdaq Right Now?
After a disastrous year in 2022, when it was down about 33%, the Nasdaq Composite Index is off to a solid start in 2023. It had its best January since 2001, up 10.7%, and it has pretty much maintained that level of performance as it remains up about 9.6% year to date (YTD) as of market close on March 9.
Where does it go from here? There are a lot of mixed signals out there, with some predicting another correction, while others are optimistic that the worst is behind us. If you are wondering whether or not it is safe to invest in the Nasdaq right now, consider these three points.
Only twice in its nearly 50-year history has the Nasdaq Composite had two negative years in a row. The first was in 1973 and 1974 when it fell 31% and 35% in those years, respectively. There are some parallels between that period and now, as inflation was growing at above average rates, the economy was in recession, interest rates were high, and unemployment was rising. But there are some key differences too. Inflation is going down this year, whereas it continued to rise in 1974, unemployment is still extremely low, and the nation has not yet had a recession -- although one is possible this year.
Source Fool.com
