In the stock market, January is often thought of as one of the most volatile and unpredictable months. It is usually seen as a time to take extra care with your investments and watch where the markets go before making any moves.
However, in this January 2021, the Nasdaq Composite has had very different results so far. Despite the economic turbulence of the year, and the fact that it’s only been the start of a new year, the Nasdaq Composite is still up an incredible 11.7%. The index has been able to stay ahead of the other major US stock markets, despite the global pandemic and economic downturn.
It is not too far-fetched to suggest that the Nasdaq Composite may be benefiting from the fast-growing sector of technology stocks. Tech stocks have had a stellar performance recently, driven partly by the presence of tech giants like Amazon, Alphabet, Microsoft and Apple, among others. The sector has been able to weather the Covid storm better than traditional, cyclical investments like energy and industrials.
Moreover, the Nasdaq Composite also has an advantage over other indices thanks to its broader portfolio of stocks. The index offers exposure to a wide variety of companies, making it difficult for a single event to have an adverse effect. This has allowed the Nasdaq Composite to hold onto its relative level of stability, in spite of the wave of volatility shaking up the markets.
All in all, the Nasdaq Composite has had a great start to 2021 and looks set to continue performing well as the year progresses. With its broad portfolio and tech-heavy focus, the Nasdaq Composite appears to have the best odds of gains among the major US stock indices. Investors should keep an eye on the Nasdaq Composite if they are looking to capitalize on the upswing in the markets.
In the stock market, January is often thought of as one of the most volatile and unpredictable months. It is usually seen as a time to take extra care with your investments and watch where the markets go before making any moves.
However, in this January 2021, the Nasdaq Composite has had very different results so far. Despite the economic turbulence of the year, and the fact that it’s only been the start of a new year, the Nasdaq Composite is still up an incredible 11.7%. The index has been able to stay ahead of the other major US stock markets, despite the global pandemic and economic downturn.
It is not too far-fetched to suggest that the Nasdaq Composite may be benefiting from the fast-growing sector of technology stocks. Tech stocks have had a stellar performance recently, driven partly by the presence of tech giants like Amazon, Alphabet, Microsoft and Apple, among others. The sector has been able to weather the Covid storm better than traditional, cyclical investments like energy and industrials.
Moreover, the Nasdaq Composite also has an advantage over other indices thanks to its broader portfolio of stocks. The index offers exposure to a wide variety of companies, making it difficult for a single event to have an adverse effect. This has allowed the Nasdaq Composite to hold onto its relative level of stability, in spite of the wave of volatility shaking up the markets.
All in all, the Nasdaq Composite has had a great start to 2021 and looks set to continue performing well as the year progresses. With its broad portfolio and tech-heavy focus, the Nasdaq Composite appears to have the best odds of gains among the major US stock indices. Investors should keep an eye on the Nasdaq Composite if they are looking to capitalize on the upswing in the markets.
