Where now for NASDAQ
Q – I bought units in the TD Science & Technology Fund early last year after the Nasdaq dropped 20%. It gained 30% in no time but needless to say that was short-lived. The fund is now down by something like 40%.
Do you feel that this sector will come back to what it was at early last year any time soon (4000-5000 range)? Should I hold on and hope for the best long-term? – T.T.
A – Nasdaq at 4000-5000 soon? Not very likely. Should you hold on? That depends on your risk tolerance and your patience. We’re somewhere near the bottom at this point, but we could experience more pain over the summer. The turnaround will take some time and it could well be a few years before we see Nasdaq back in the range you mention. But there is more upside potential than downside risk from this point if you’re willing to wait it out. – G.P.