Nasdaq Likely To Exceed 2019 Returns Amid Pandemic: 5 Picks

More than half of 2020 is already over with no major economic, financial, political, or technological breakthrough. The global economic and financial landscape is rotating around a health hazard — coronavirus — and its economic devastations.

The U.S. and the global financial markets are in a downturn facing severe volatility. Despite the gloomy scenario, the Nasdaq Composite Index is up more than 20% year to date, much to the delight of market participants. In comparison, the S&P 500 has just managed to enter positive territory and the Dow is still in the red.    

Impressive Performance by Nasdaq Composite

Nasdaq Composite ended 2019 providing 35.2% return, its best performance in six years. The tech-laden index started 2020 from where it ended last year. Barring a coronavirus-induced short bear market, the index maintained its northbound trajectory.

On Jul 20, Nasdaq Composite ended at 10,767.09, its 28th closing high so far this year. During intraday trading, the index recorded a fresh all-time high of 10,783.80. Notably, the tech-heavy index skyrocketed 62.4% from its recent lowest level recorded on Mar 23.

Is Technology Sector Overvalued?

Since the Nasdaq Composite is a tech-heavy index, its performance is directly related to the technology sector. Several economists and financial experts have warned that the technology sector is overvalued and a second wave of COVID-19 in the United States and several other large economies will ultimately end the technology bubble.

Let's consider that the coronavirus related problems will stay in 2020 and no vaccine or a definite line of treatment will appear in the near future. Yet, the technology sector will survive. The outbreak of coronavirus globally has established digitization as the new normal for what is being touted as going to be a very long time.

As social distancing is keeping near and dear ones away, people, especially citizens of emerging and less-developed countries, are reaching out more than ever with smartphones, tablets or notebooks.

1 2 3
View single page >> |

Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.