The start of a new year is an exciting time for stock market investors. According to a CNBC report, January’s NASDAQ is especially promising for achieving gains because it is one of the few best-performing markets in the world. The NASDAQ Composite Index, which tracks nearly 3,000 stocks listed on the technology-focused exchange, surged 25% in 2020.
It remains to be seen if the current trend of positive returns will continue, but a few trends also had a strong showing during January’s trading. For instance, the technology sector was particularly strong last month, and the S&P 500 tech sector climbed more than 7%. This means that large-cap tech stocks, such as Apple, Amazon, and Microsoft, all benefited from the surge.
Additionally, the stay-at-home trend during the pandemic has had a positive impact on the online retail sector. Companies like Shopify, CloudCommerce, and Etsy all saw share prices climb higher at the start of the year, meaning that those who invested in them saw returns above the market average.
It’s unclear if the strong performance of the NASDAQ will continue in 2021, but its track record so far suggests it is well-positioned to continue to deliver gains. Furthermore, the technology sector remains strong, and with so much demand for the products that it provides, this means there are plenty of opportunities for long-term investors. Therefore, if you’re looking for a market with the best odds of delivering returns this year, January’s NASDAQ is a good bet.