Hebrews 13:8
Jesus is the same yesterday, today, and forever.
When you think of American stock exchanges you think of one of two places usually: the New York stock exchange (NYSE) or the National Association of Securities Dealers Automated Quotations (NASDAQ). There are also over-the-counter opportunities to buy stock. The New York Stock Exchange evolved from a meeting on May 17, 1792 of twenty-four stockbrokers under a buttonwood tree[1]. That was the beginning of Wall Street. The NASDAQ is a bit younger, opening in 1972: the first electronic system. The securities traded there are mostly technology.
So called the “magnificent seven” there are a series of stocks traded on the NASDAQ that have caused for extreme growth in indexes in 2023 and 2022: Amazon, Apple, Alphabet, Microsoft, Meta Platforms, Nvidia, and Tesla. AI is one of the greatest contributors to the 75% growth of these positions.
- Apple has produced a 1,010% total return over the past decade, nearly five times the return of the S&P 500.
- Meta Platforms went public in 2012 (as Facebook) and has risen by 841% since then, versus a 362% gain in the S&P 500.
- Even after decades of rapid growth, Microsoft has produced 11x returns over the past decade.
- Nvidia was added to the S&P 500 in 2001 (Fun fact: It is the company that replaced Enron). Since then, it has delivered a staggering 12,950% total return for investors.
- Tesla has gained more than 800% since the beginning of 2020.[2]
But could this growth be a concern? The “dot-com bubble” of 1990s and early 2000s was an instance of extreme growth, followed by a crash, and ultimately a bear market.[3] As of today, and since 2022, there is what we call a bull market. A state where securities, or anything traded, are rising.
If the instability of stocks is concerning for you, in my opinion, look to the Lord who is the same yesterday, today, and forever. There is consistency in who He is and who the word says He is. He will never leave you nor forsake you.
Citations
[1] Hayes, Adam. “Dotcom Bubble Definition.” Investopedia, Investopedia, www.investopedia.com/terms/d/dotcom-bubble.asp. Accessed 10 May 2024.
[2] “New York Stock Exchange.” Encyclopædia Britannica, Encyclopædia Britannica, inc., www.britannica.com/money/New-York-Stock-Exchange. Accessed 10 May 2024.
[3] “The Surprising Truth about the S&P 500 and the ‘Magnificent 7’ in 2024.” Motley Fool Wealth Management, Motley Fool Wealth Management, 30 Jan. 2024, foolwealth.com/insights/sp500-and-the-magnificent-7-in-2024.
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