Is QQQ ETF A Buy Or Sell While Down Over 20% This Year?

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Psycho Analyst


  • Investors have done very well buying QQQ after it has entered every bear market since 2009. We must consider several factors to decide if this is still a wise strategy.
  • QQQ's metrics have improved greatly over the past 12 months, we look to see if its stocks' earnings growth rate supports its current valuation.
  • We examine the impact of several important new factors that may make this time truly different from the rest of the period during which QQQ has traded.

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Between March of 2009 and January of 2022 the share price of the Invesco QQQ Trust (NASDAQ:QQQ) rose steadily with only brief corrections, every one of which investors correctly treated as a buying opportunity.

QQQ Price

QQQ Price Return March 31 2009 - Dec 31, 2021

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This article was written by

Psycho Analyst profile picture
Though I have done quite a few different things over the course of a long life, I am best known as a writer of bestselling books about business and health. My success has come because I am a very curious person who doesn't just follow the herd and trust whatever the experts tell us to believe. I do my own research. I collect the facts, look at them objectively, and draw my own conclusions. Over the years, I have been amazed at how much of what everybody "knows to be true" is based on poorly designed studies, many of them impossible to replicate. I approach Investing with the same open mind, challenging the orthodoxies that attract the herd, studying how things really work, and doing my best to come up with an approach, based on facts, that works for me and would appeal to those who find thinking worthwhile. Lately I have been investigating how the indexes that underlie ETFs are constructed and finding out in the process that the way these indexes are set up guarantees that many of the ETFs people buy are not really doing what their titles suggest they do. I am also doing my best, in the current very challenging environment, to find relatively safe ways to deploy the money I use to generate income, money that I would normally put into CDs. I use valuation concepts and a liberal sprinkling of common sense to find stocks that I believe will not only produce modest amounts of income, but also grow their share price over the next five years.

Disclosure: I/we have a beneficial long position in the shares of VTI VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not a registered investment advisor. I am just an ordinary investor with a lot of curiosity who enjoys researching stocks and sharing what I find with others. Don't buy or sell any security you read about here before doing your own research and considering opposing views.

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