The NASDAQ Composite index has been introduced in 1971 at the base level 100. It has over 3,000 components.
The 10 years chart involves the financial crysis from 2008. As you can see, index value’s “growing speed” after 2008 is faster than before the crysis.
People often say that long term investments carry less risk than short term ones.
Well, NASDAQ’s long term performace chart is a little bit againts this.
- Index value has grown from 2523 to 5910 throughout the past 10 years which equals 8.88% annual profit.
- 3 and 5 years profits are mostly in the positive domain.
What can you see on the chart?
You can calculate NASDAQ’s 1 month return from NASDAQ’s value today and NASDAQ’s value 30 days ago. You can also do the same calculation for yesterday and NASDAQ’s value 31 days ago etc. If you do this calculation for each days, you will get a curve of NASDAQ’s 1 month yield. The same applies to other yield periods from 3 months to 5 years.
This chart shows the three and the five year yield curve in the past 10 years.
Treshold marked with red shows 0% return.
This chart shows NASDAQ’s relative change against the US customer price index in the past 10 years.
NASDAQ has seriously outperformed the US CPI in most of the time.
*charts are not updated on a daily basis but you can prepare similar charts for yourself by using Chartoasis Sesame. If you feel like analyzing NASDAQ’s historical price, you can do that for free at www.chartoasis.com/sesame . You will also need to download NASDAQ historical data. This step-by-ste guide will explain you how to do it.