The Invesco QQQ ETF (NASDAQ:) is an exchange-traded fund based mostly on the Nasdaq-100 Index. The Nasdaq-100 Index contains 100 of the biggest home and worldwide non-financial firms listed on the Nasdaq Inventory Market based mostly on market capitalization. QQQ inventory has definitely had a superb 2019, gaining a convincing 37% up to now this 12 months. This may doubtless mark the very best 12 months for QQQ since 2009 when the Monetary Disaster ended. However all good issues come to an finish. Search for subsequent 12 months to be a tough one for the NASDAQ.
The present price-to-earnings ratio for the . This can be a huge a number of enlargement from a 12 months in the past when the P/E ratio stood at 20.5. This 34% enlargement within the a number of accounted for 90% of the 37.5% acquire in within the QQQ.
One can, subsequently, thank the uber simple financial coverage from the Fed for the overwhelming majority of the features in 2019. Three price cuts and QE4 offered an enormous tailwind…