From the Desk of Willie Delwiche.
The NASDAQ 100 peaked over a year ago. Its 1-year return dipped into negative territory in April and has been there ever since.
Why It Matters: The NASDAQ 100 has spent more time underwater (on a trailing 1-year basis) over the past 160 days than it did in the entire time going back to 2010. After a decade of sustained strength and limited duration downturns, investors who are sticking with their growth biases must deal with a challenging new reality. Those who are locked into one asset class (e.g. stocks over bonds or commodities) or one style (growth over value) or one region (US over the rest of the world) are seeing previously sustained trends move against them. Adaptability across asset class, style and region is likely to be a critical component of investing success as we move into 2023 and beyond. Keep the trend your friend.