Currently, the Nasdaq 100 trades at a twelve-month P / E nearly 27x . It is higher than the 10-year average 22 times and is at the top end of its historical range of 15 – 28 times from Dec-09 to Dec-19 (Motilal Oswal). With an above-average rating, investors can invest in this index on a staggered basis. In the meantime, if you want to try NAS100, you can go to http://www.volatility75.net/nas100brokers.html immediately to hire the best US100 brokers.
On the other hand, the S&P 500 is trading at 19.3x, close to its past average. Though note, according to its track record, the Nasdaq 100 traded at a more pricey valuation than the S&P 500 given the big percentage of large-growth tech stocks in it.
Our recommendations are in the Nasdaq VS S&P 500
If you want global diversification with higher potential long-term returns and lower volatility, then you might consider incorporating 10-20% of your equity allocation into the S&P 500.
If you want to target higher returns (better than the S&P 500) and are ready to take on higher volatility, then you can consider investing 10-20% of your equity allocation in the Nasdaq 100. It’s for those who are confident enough in technology.
Investing in any of the indices will help you diversify your investment risk and also give you the benefit of the rupee depreciation.
We suggest that you organize this investment in stages over the next 3 to 6 months.
It is difficult to say whether the market has bottomed out or may have fallen further. By surprising your investment, you ensure that you don’t miss out on attractive buying opportunities in the future if the market drops further.
So, that was about a comparison of the two Nasdaq VS S&P 500 indexes that you should know. We hope it’s useful for you. See you in our next articles about NAS100.