Nasdaq High Revenge–High Risk, High Return US Equity Investment Strategy

This article is a reprint from “Toushiru” provided by Rakuten Securities, “Understanding in TOP 3 Minutes! Today’s Investment Strategy”. Today’s point Meaning that the Nasdaq 100 index has reached a record high The performance of the Nasdaq main stock has improved. The Nasdaq 100 index has grown about 70 times in 30 years. Introducing the views of Mr. Mutsumi Kagawa. Meaning of the Nasdaq 100 Index hitting record highs In the US market, the S & P 500 Index and the Nasdaq 100 Index hit record highs on April 13. “From late February to early April, the expansion of economic activity accelerated moderately in most regions,” the Federal Reserve Board of Governors (FRB) said in a regional Fed economic report released yesterday. The consumer price index (CPI) announced on the 13th was + 2.6% year-on-year, but it is regarded as a temporary price increase due to the rise in commodity prices, and the core CPI (consumption excluding energy and food) Note that the growth of the CPI) was only + 1.6%. The Fed does not anticipate a “sustainable rise in inflation,” and in fact long-term interest rates have settled in the 1.6% range. Under these circumstances, the recovery trend of Nasdaq’s main stock, which symbolizes growth stock, is clear in April. The return of funds to the Nasdaq, replacing the temporarily lost value stocks, was a factor pushing up the market average (S & P 500 Index). For example, the NYSE FANG + Index, which is composed of major digital-related stocks, recorded an increase for 11 consecutive business days and attracted attention (13th). Chart 1 shows the changes in the Nasdaq 100 Index and the S & P 500 Index, which show the stock price trends of Nasdaq’s main stocks (compared with the beginning of 2020 as 100). The top six companies by market capitalization of the Nasdaq 100 index called “GAFA MT” (Google, Apple, Facebook, Amazon, Microsoft, Tesla) overlap with the S & P 500 index (market capitalization weighted average), and the Nasdaq 100 index revenge (counterattack). ), Which contributed to the renewal of the S & P 500 index’s highs.

(Source) Created by Rakuten Securities Economic Research Institute from Bloomberg data (early 2020-April 14, 2021)