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No Top in Sight, Chinese Stocks Explode, Nick Colas and Jessica Rabe on the Fed Cut

The Compound and Friends

NOTE

History Favors Tech's Comeback

Recent trends indicate that the NASDAQ 100 is likely to outperform the S&P 500 in the coming months, especially after experiencing significant underperformance in the last 100 trading days. Historically, when the NASDAQ’s trailing returns lagged the S&P by at least one standard deviation, it has resulted in a strong comeback, outperforming in two-thirds of similar instances by an average of nearly four points. This pattern often reverts in mid-cycle markets, suggesting a positive outlook for tech stocks. Additionally, investors bullish on the tech sector should ensure they have sufficient exposure in their portfolios, as the S&P 500 includes considerable tech representation compared to other investment types.

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