Nasdaq 100 momentum unmatched since 1999 so brace for a shakeout, says BTIG
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Yahoo
13 minutes ago
- Yahoo
Is Investing in the Nasdaq-100 a No-Brainer Move?
Key Points The Nasdaq-100 index features the top growth stocks in the world, and tracking it has resulted in significant returns for long-term investors. Since the tariff pause back in April, both the Nasdaq and the S&P 500 have soared more than 25%. Heightened valuations, however, could mean more limited returns in the short term. 10 stocks we like better than Invesco QQQ Trust › Investing in the top growth stocks on the Nasdaq stock exchange has generally been a good move for investors. And by tracking the Nasdaq-100, an index of the most valuable nonfinancial stocks on the exchange, investors can easily get exposure to the best and brightest growth stocks. But with valuations soaring this year and the Nasdaq Composite and S&P 500 index hitting record levels, is it still a no-brainer option to invest in an exchange-traded fund (ETF) that tracks the Nasdaq-100? Or is now the time to shift away from the index and perhaps pivot into safer investments? Why investing in the Nasdaq-100 makes sense for long-term investors If you're a long-term investor who just wants to add an ETF to your portfolio that you can forget about, the Invesco QQQ Trust (NASDAQ: QQQ) can be a compelling option. It tracks the Nasdaq-100, and in just the past five years it has more than doubled in value and outperformed the overall market. Since the ETF tracks an index of top stocks, it means that you don't have to worry about keeping tabs on how individual stocks are doing; the Nasdaq-100 will automatically adjust and add companies that are rising in value while also dropping ones which are no longer among the top 100. This strategy can make the ETF a good no-nonsense means of investing in many of the best growth stocks in the world. There's simply not much of a substitute for investing in growth stocks. While safer options can result in less volatility in a given year, you're likely to perform far better by targeting the fastest-growing companies in the world. Over the past decade, the S&P 500 has generated total returns (including dividends) of more than 260%. While that's impressive, the Invesco QQQ Trust is up by over 450% over that same period. It has been the better investment by far. Should you be worried about the market being at record levels? One reason you might be thinking twice about investing in growth stocks or tracking the Nasdaq-100 index right now is that stocks are around record levels. Both the Nasdaq and the S&P 500 have hit record highs this year, despite question marks looming about what's ahead for the economy. Since April 8, which is around the time "reciprocal tariffs" were paused, the S&P 500 has rallied by nearly 30% while the Nasdaq is up close to 40%. There has been a lot of economic volatility, and there is definitely the danger that if investors become concerned about tariffs, stocks could be headed back to the lows they reached in April. I certainly wouldn't rule out a potential decline in the market in the near future, and this is a risk for investors to consider, especially in light of how hot stocks have been in recent months. Is it still a good time to invest in the Nasdaq-100? If you're investing for the long term, i.e., five years or more, then it can still be a good option to invest in a fund such as the Invesco QQQ Trust. There is always going to be risk and uncertainty when you have exposure to growth stocks, particularly tech growth stocks, where valuations can become enormous. However, even if there is a bad year for the markets in the near future, it's likely to recover, just as it always has. As long as the U.S. economy continues to grow, the S&P 500 is likely to rise in value as well. And with the Nasdaq-100 focused on growth, it may continue to outperform. If your investing time frame is shorter than five years, then it may be a good idea to focus on safer stocks to preserve your capital or even to put money into bonds. But if you're in it for the long haul, then it can still be a no-brainer move to invest in the Nasdaq-100. Should you buy stock in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Investing in the Nasdaq-100 a No-Brainer Move? was originally published by The Motley Fool
Yahoo
43 minutes ago
- Yahoo
Gold Holds Gains After Softer US Job Data, Tariff Roll-Outs
(Bloomberg) -- Gold was steady after gaining the most in two months on Friday, as traders weighed the implications of soft jobs data for the US economy and the Federal Reserve's interest-rate path. We Should All Be Biking Along the Beach Seeking Relief From Heat and Smog, Cities Follow the Wind Chicago Curbs Hiring, Travel to Tackle $1 Billion Budget Hole NYC Mayor Adams Gives Bally's Bronx Casino Plan a Second Chance Bullion traded near $3,360 an ounce, after rising 2.2% in the previous session while equities dipped. The precious metal's jump was driven by two main factors: a dramatic slowdown in US hiring report that fueled rate-cut bets, and President Donald Trump's roll-out of some of the steepest trade tariffs since the 1930s. The US added 73,000 jobs in July while the prior two months' data were revised down by nearly 260,000, the Bureau of Labor Statistics said on Friday. Trump fired the head of the agency hours after the report sent markets tumbling. Gold has climbed more than a quarter this year as Trump's tumultuous policymaking and geopolitical tensions elsewhere in the world boosts haven demand. Investors and analysts see more gains ahead with continued central bank buying and potential rate cuts. Bullion was 0.3% lower at $3,354.29 an ounce as of 8:34 a.m. Singapore time. The Bloomberg Dollar Spot Index was steady. Silver was down 0.4%, and palladium and platinum also slipped. How Podcast-Obsessed Tech Investors Made a New Media Industry Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off What's Really Behind Those Rosy GDP Numbers? Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
an hour ago
- CNBC
CNBC Daily Open: There's no return policy for jobs numbers
After U.S. jobs figures for May and June were revised significantly downward by the Bureau of Labor Statistics — slashing a combined 258,000 from previous figures — President Donald Trump, imputing political bias and data manipulation to BLS Commissioner Erika McEntarfer, revised her employment status to "terminated." Government officials from both sides of the political aisle had plenty to say about that. "Bottom line, Trump wants to cook the books," said Ron Wyden, the top Democrat on the Senate Finance Committee. Meanwhile, Republican Senator Rand Paul told NBC News that "you can't really make the numbers different or better by firing the people doing the counting." The move, indeed, does have a whiff of the Chinese government, in August 2023, stopping the release of youth unemployment rates because they were spiking to record highs. (Beijing resumed disseminating the data in January 2024.) A falling tree makes a sound, regardless of whether there's anyone around to hear it. Terminating the person who reports that noise won't suck sound waves back into a vacuum either. Markets, too, were vocal in their response to Trump's firing of McEntarfer as well as the dismal jobs report. On Friday, the three major U.S. indexes had their worst day in months, a sharp turn from the week prior, which saw consecutive days of record highs for the S&P 500 and Nasdaq Composite. This changes the calculus. With new tariffs due to take effect Aug. 7 — which could further slow hiring in the U.S. because of increased costs and uncertainties for companies — both the economy and markets might weaken further. Then it becomes a matter of whether the "TACO trade" — "Trump Always Chickens Out" — will, in the words of The Terminator, be appear in the U.S. jobs market. Nonfarm payrolls in July grew 73,000, lower than the Dow Jones estimate of a 100,000 gain. Unemployment edged up 10 basis points to 4.2%. June and May's jobs numbers were revised dramatically lower. Trump fires commissioner of labor statistics after jobs report. In a Truth Social post, the U.S. president accused BLS Commissioner Erika McEntarfer of being a political appointee who "faked the Jobs Numbers before the Election" and providing inaccurate data. Stocks suffer their worst day in months. On Friday, the S&P 500 lost 1.6%, its worst day since May 21, breaking a 26-day streak when the index's moves remained within a 1% range. The pan-European Stoxx 600 index fell 1.89%, its biggest drop since April. Berkshire Hathaway's operating profit drops. Year over year, Warren Buffet's conglomerate experienced a 4% drop in second-quarter earnings to $11.16 billion. Berkshire warned of Trump's tariffs and their impact on its businesses. [PRO] August is historically the second worst month for the S&P 500. That's according to the Stock Trader's Almanac, which tracks data back to 1988. Tariff developments and AI-related earnings during the week will give a sign of whether history will repeat itself. Switzerland's tariff shock: The 39% U.S. hit no one saw coming The U.S.' imposition of a 39% tariff rate on Switzerland's came as a shock to the Alpine nation. Indications in the Swiss press had been that the country was close to negotiating an outline deal similar to those struck by the European Union, the U.K. and Japan, which set baseline tariffs between 10% and 15%. Instead, it has received one of the highest rates of any country. That is a significant blow, with the U.S. accounting for around a sixth of Switzerland's total exports.
