Update: 12/21/20

In News by admin

“Investing is simple. It’s the financial industry that works hard to make it complex!”
Robert Rolih, investor, best-selling author

Sometimes simple is good. Sometimes simple is better. And sometimes simple is just plain fun. The chart below probably falls into the last category. Shown here is year to date price action of QQQ (the ETF based on the Nasdaq 100 index) compared to its own price action back in 2009. Uncanny, right?

You may remember that in 2009 stocks staged a huge rally after the sub-prime housing crisis of 2008.  While the cause of the bear market was different this year, the results were strikingly similar, as you can see. So, what happened next?  Well, in 2009 the Nasdaq rallied into year end, corrected at the start of 2010, hiccupped again in the spring, and then ultimately headed up to begin one of the longest bull markets in history. So, should we expect that analog to hold through 2021? Well, with only one observation to go by and a full year of “un-precedented” events under our belt, probably best to keep in mind that sometimes simple is just plain fun, nothing more.  Enjoy the holdidays!


Jim, Mark, and Dave

p.s. To speak with a financial advisor, click on the calendar app below, go to ValueMonitoring.com/Welcome.