Will The NASDAQ (QQQ) Outperform the S&P 500? Which Sectors Could Be Disrupted?
0:00 Sometimes, all you can buy is an ETF (in a retirement account). Why is the NASDAQ (QQQ) outperforming the S&P 500 more and more? 0:58 Why is the S&P 500 fund so praised? Jack Bogle's books and vanguard had something to do with it in the late 80s and early 90s 1:58 Let's look at the data over the past 24 years. QQQ outperformed S&P500 during the innovation era. 2:45 Examples with prior bubble stocks Priceline (BKNG), Amazon (AMZN) Netflix (NFLX), and Apple (AAPL) - Not bubbles after all. 3:59 Bankruptcies happen in both indices, but to me, S&P bankruptcies happen to major companies (e.g., SIVB Silicon Valley Bank, a nearly 50 year-old company) 5:00 S&P 500 - Who has the biggest market cap wins! Better after being screned by a committee. Tesla was in the NASDAQ from the start, but entered the S&P 500 in December 2020 after a 60% average annual return per year over the last 10 years 6:35 GAAP earnings is a problem with the S&P 500 criteria for inclusion, in my view. GAAP penalizes disruptive stocks. 8:20 A lot of innovators in the NASDAQ are not yet in the S&P 500 (Airbnb ABNB, SNAP, UBER, DELL, NXP semi, Square, SNOW, ZS, CRWD, MDB, etc...) 10:38 6 different examples. Financials vs. Fintechs, neobanks, and public blockchains 12:22 Traditional industrials vs. modern manufacturing and industry 2.0, unionized vs. agile workforces. 14:41 Real estate (especially retail and office). Plus, real estate has a lot of debt! 15:42 Energy independence and decentralization 16:05 Utilities and the energy indepencence revolution + virtual grids 17:37 Neobrands, direct-to-consumer companies on the rise, slowly replacing legacy brands created by the rise of television. 18:46 Each company needs to be assessed independently EVEN if they are in a innovation-threatened sector. Some will be equipped to handle the threat, some will not. But if we're buying an index, we care about how the sector as a whole does! 19:11 Thanks for watching! Please like and subscribe! In this video, I explain why the NASDAQ (and it's counterpart ETF, ticker symbol QQQ) may be more likely to outperform the S&P 500 because of disruption that may come to certain sectors, such as financial services, utilities, auto sector, and the old industrials sector. (S&P ticker is SPY for the most famous ETF, also, see any total stock index fund which is highly correlated). In this video, I go through the total returns of companies such as Tesla, Amazon, Apple, or Netflix to show why it's a problem that these were not included in an index like the S&P 500 early on. Which sectors of the S&P 500 are the most at risk of disruption? This is what I introduce in this video. As always, this video is NOT investment advice, and none of the contents should be construed as such. I do not make short-term or long-term price predictions for any stock investment, and all words spoken in this video are for entertainment purposes ONLY .
