QQQ first-half 20% gain, Nasdaq P/E 37

The Invesco QQQ ETF has risen 20% so far this year. Since 4, it has recorded an additional gain of 33%. This figure reflects the recent market rally.

Past long-term performance ranged from an annual average of 11% to 21%. This range is presented as a historical figure for long-term investment performance. It is also noted that past performance does not guarantee future performance.

Nasdaq-100’s price-to-earnings ratio (P/E) is currently 37. This level is similar to the high valuations observed from late 2020 to early 2021. The P/E is an indicator showing how many times the stock price represents earnings.

The article stated that QQQ remains suitable for long-term investment, while also noting that further upside is uncertain due to its current valuation. It recommends checking valuation indicators when making investment decisions. Decisions regarding specific buying and selling timing depend on an individual’s investment goals and time horizon.

The recommendations include monitoring valuation and watching earnings announcements from the constituent holdings. It emphasizes that the performance and changes in earnings outlook for large technology companies may affect the overall index. Risk-management measures such as staggered buying are also suggested.

In summary, QQQ has posted a significant rise this year, and the Nasdaq-100 is currently at a high PER level. The future direction of the index is presented as likely to depend largely on valuation and the performance of individual companies. As additional information, reviewing the earnings of QQQ’s constituent holdings is recommended.