10 June 2020: The Nasdaq closes above 10,000
On June 10, 2020 the Nasdaq Composite closed above 10,000 for the first time, led by Apple, Amazon and Microsoft. Less than three months earlier it had been in a bear market because of the pandemic. Work-from-home winners and near-zero interest rates fueled the rebound. Investors who had sold in March watched from the sidelines as tech stocks raced to record highs.
The lesson: Selling in a panic locks in the loss and leaves you guessing when to buy back.
What it meant for investors
$1,000 in Nasdaq 100 index fund at the start of 2020 → $2,759 today, vs $2,092 in the S&P 500.
We start the clock at the start of 2020, the year it happened. That is 2.8 times the money, and $666 more than a plain index fund made over the same years.
What Nasdaq 100 index fund teaches: A great industry bought at a crazy price can take fifteen years to break even, so the price paid matters even when the story turns out right.
| Bought in | Price then | Worth today | S&P 500 would be |
|---|---|---|---|
| 2015 | $4,200 | $5,714 | $3,301 |
| 2018 | $6,500 | $3,692 | $2,519 |
| 2020 | $8,700 | $2,759 | $2,092 |
green = beat the S&P 500 · red = lost money
What if you bought Nasdaq 100 index fund? Every starting year and the full story →
More Nasdaq 100 index fund history
- 8 February 1971: Nasdaq opens for business
- 10 March 2000: The Nasdaq peaks at 5,048
- 14 April 2000: The Nasdaq drops nearly 10% in a day
- 9 August 1995: Netscape's IPO kicks off the dot-com era
- 22 August 2013: Nasdaq freezes for three hours
- 31 December 1999: Nasdaq ends its best year ever
Could you have called it at the time? The wheel picks the year, you pick the position, ten seconds a pick.
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