Are you invested in the United States or in Canadian stock markets? If so, is your wallet in red right now? One thing for sure, there is absolutely no need to panic. Patience is the key here, as long as you are investments in a good Blue Chip or actions of the company fundamentally strong.
Before starting, shares are in a downward trend this year, whether in the United States or in Canadian markets. The reasons are obvious interest rate increases and inflation. People are finding it increasingly difficult to save money, given price increases, hence negative stock market yields.
First, since the beginning of 2022 to date, the Nasdaq 100 has returned -29%. In this article, let’s make a deep dive into the Nasdaq 100 index and analyze the yields he has provided over the years. In this way, we can better assess market yields in the future once this recession scenario / inflation is over.
Below are the annual yields of the Nasdaq 100 over the years –
Nasdaq 100 returns per year
| Year | Back |
|---|---|
| 2022 | -29.00 |
| 2021 | 26.63 |
| 2020 | 47.58 |
| 2019 | 37.96 |
| 2018 | -1.04 |
| 2017 | 31.52 |
| 2016 | 5.89 |
| 2015 | 8.43 |
| 2014 | 17.94 |
| 2013 | 34.99 |
| 2012 | 16.82 |
| 2011 | 2.70 |
| 2010 | 19.22 |
| 2009 | 53.54 |
| 2008 | -41.89 |
| 2007 | 18.67 |
| 2006 | 6.79 |
| 2005 | 1.49 |
| 2004 | 10.44 |
| 2003 | 49.12 |
| 2002 | -37.58 |
| 2001 | -32.65 |
| 2000 | -36.84 |
| 1999 | 101.95 |
| 1998 | 85.30 |
| 1997 | 20.63 |
| 1996 | 42.54 |
| 1995 | 42.54 |
| 1994 | 1.50 |
| 1993 | 10.58 |
| 1992 | 8.86 |
| 1991 | 64.99 |
| 1990 | -10.41 |
| 1989 | 26.17 |
| 1988 | 13.54 |
| 1987 | 10.50 |
| 1986 | 6.89 |
So what is the Nasdaq 100? Or why is the NASDAQ 100 composite? The importance
The NASDAQ 100 was launched in 1985 and, therefore, the returns of the full year began with the year 1986. The index consists of the 100 best companies that negotiate on the NASDAQ Stock Exchange.
In addition, the weights of the Nasdaq 100 company are listed from the largest to the smallest. The index is strongly focused on technological companies, but also includes companies from other sectors. It is often used as a health barometer in the technological sector. The twenty most important companies include most of the weight in the Nasdaq 100 index.
You will find below the list of the 15 main companies in the NASDAQ 100 index and the weight of individual companies with the overall index.
As you can notice, Apple is the king of the cream here with a weight of more than 1/10 to 13.43% followed from Microsoft to 10%. These two technological giants alone contribute approximately 20% of the overall index. If it can really mean something for you. The next in the list is Amazon with 5 percent odd, which is lower than Apple weighs. 🙂 This is how the valuable stock of apples is evaluated by the global market.
The Apple and Microsoft actions price movement has a direct impact on the NASDAQ 100 composite and the global US stock markets in general.
Another thing, when companies are deleted and added to the NASDAQ 100 index, the list of members can temporarily show the deleted company and the added company.
Now let’s quickly see the data from the S&P 500 index below -below –
As with the NASDAQ 100 composite, even the S&P 500 has been extremely volatile this year, since January, the fluctuating yields of figures with a single extremely high negative to high positive almost next month.
It is best to invest very carefully, with only a month to play in the current calendar year.
My personal point of view on the stock market and Blue Chips in general
Let’s keep it clear and simple here.
Please note that the stock market is where you make money. Especially with actions. You cannot find a replacement here. You tend to lose money on the stock market if you sell your actions. Or your wallet is either “red” or “green”. But unless you click on this sales button, your wallet is likely to recover.
My investment mantra is quite simple – stay invested for the long term, by investing in good companies of generation of cash flow and growth flows.
In addition, even during this financial crisis and this period of recession, far from what I have seen, is that the stock of Apple is the one that has not experienced a strong fall in the course of action, just like Microsoft.
You and I could be stupid in the investment or want to make money to buy this luxury house / car, but many times, the market is never false, the markets know exactly how to assess companies and the price movement accordingly. Sometimes when the EP is really high, for actions like Amazon, the correction is inevitable.
While Google, Amazon, Nvidia, Tesla and AMD have all corrected almost 40%, the investment now will certainly give you the yields once the markets are again positive, this is how wealth is created. You have to invest while the market is in panic and sells while everyone buys the summits that wish to do more.
The simple socket here is the average cost in dollars in the best blue chips and patiently wait until the price is increasing. Apple and Microsoft for example will be very quick to bounce back once the markets are starting to move in the upward trend. It’s just a matter of time. Remember the fall in the coastal time market, the 2008 recession scenario, and that you remember the recovery? Perhaps the markets will move laterally for the whole of 2023, but do not panic, keep the DCA in the actions and the companies to which you really believe. It is all the same, the markets will fall from this area.
Thank you for reading, happy investing! Stay happy and safe.
