Mungofitch is a great fan of QQQE (Equal weight NASDAQ 100). I’m a great fan of mungofitch so I thought I’d see how QQQE is doing relative to QQQ (NASDAQ 100 fund based on market cap). Also, I want to see how SPX (S&P500) is doing relative to QQQE and QQQ.
SPX, QQQ and QQQE are all in a falling trend. I don’t think they will bottom for a while, since the Federal Reserve will continue to raise the fed funds rate and a recession is approaching if it isn’t already here.
Of the three, QQQ is doing worst. Many “high-growth” companies with very high valuations have been smacked down by rising interest rates.
QQQE is doing relatively better than QQQ although both are falling. The ratio chart shows how QQQ did relatively better than QQQE as the bubble inflated until it popped in January 2022. Then the ratio of QQQE:QQQ began to swing up.
SPX is doing relatively better than QQQE and much better than QQQ. I wouldn’t buy any of them now since I think they will drop further. At some point in the future I will run these charts again.