Weekly Market Update May 11, 2020
The market is continuing to claw back losses for the year. Many investors are dumbfounded as to why. It is obvious that many great companies are going to lose a lot of money this year due to the COVID-19 lockdown. But for now, it seems that the markets are not going to judge company earnings this year. COVID-19 may just be a “storm” that will pass. It appears the attitude is basically that you might as well hold onto your stocks and wait for better earnings in 2021 or 2022.
Best Performing ETF of the Week: Invesco QQQ (Nasdaq 100)
The Nasdaq (QQQ) was the best performing ETF last week and for the month of April. It gained 5.7% and 15.22% respectively. It's crazy to think that it is actually up 3.41% for the year. The QQQ represents the largest non-financial stocks traded on the Nasdaq exchange; it is a market cap weighted index and contains many of the largest tech names such as Microsoft and Apple. The 10 top holdings make up 50% of the index. Let’s hope this is a precursor and the other indexes follow in it's footsteps.
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