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

The Nasdaq Composite has repeatedly reached new heights in 2024, notching more than 110 new all-time highs. Its record run has been fueled by a string of encouraging developments. The accelerating adoption of artificial intelligence (AI) was the initial catalyst for the rebound, but investor sentiment has been buoyed by waning inflation, recent interest rate cuts, and the U.S. election results. The tech-focused index jumped 43% last year and is up roughly 30% so far in 2024 (as of this writing). Students of history will note that the rally will likely continue well into 2025.Stock charts reveal that the current bull market kicked off in October 2022. While each upswing is different, history can provide context. Bull markets have historically run for more than five years, on average. We're a little over two years into the current run, which suggests it will likely continue next year. Furthermore, in years following gains of 30% or more, the Nasdaq has increased an additional 19%, on average, which suggests the coming year could be a good one for the market.Investors have also embraced the renaissance of stock splits. This has them examining companies that have split their shares, as this is generally the result of a well-run company with strong sales and earnings growth. Such is the case with Broadcom (NASDAQ: AVGO). The stock has gained 98% so far this year and 2,100% over the past decade (as of this writing). This led to a 10-for-1 stock split, which it completed in mid-July.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool