History Says the Nasdaq Will Surge in 2025. 1 Stock-Split Stock to Buy Before It Does.

The Nasdaq Composite has been on fire over the past couple of years, driven higher by the advent of artificial intelligence (AI), improving economic conditions, an uncontested election, and the Federal Reserve Bank's recent moves to cut interest rates. After returning 43% in 2023, the tech-centric index is up roughly 30% in 2024. History suggests the rally will likely continue into 2025.The current bull market began on Oct. 12, 2022, and while every rally is different, history can provide important context. Bull markets last more than five years, on average. Since the current rally just entered its third year, there's a strong likelihood the Nasdaq will continue to gain ground next year. It's also worth noting that the Nasdaq has generated gains 73% of the time, dating back 53 years, so history is on the side of investors. Finally, the Nasdaq has jumped 12%, on average, in years following positive gains, which suggests there's additional upside ahead.Furthermore, there's been a resurgence in the popularity of stock splits over the past few years. As a result, investors are taking a renewed interest in companies that split their shares, as this is historically preceded by years of robust sales and profit growth. One such company is Nvidia (NASDAQ: NVDA). The stock has gained 26,920% over the past decade (as of this writing), prompting management to initiate a 10-for-1 stock split earlier this year -- after a 4-for-1 split in 2021.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool