Core Viewpoint - The correlation between Bitcoin and the Invesco QQQ ETF has significantly weakened, indicating a growing decoupling between the two assets, with Bitcoin lagging behind the performance of tech stocks driven by AI momentum [1][2][4]. Group 1: Correlation Changes - Historically, Bitcoin and QQQ had a strong correlation above 0.75, but this has recently dropped to around 0.4, highlighting a notable divergence [2][4]. - Over the past month, QQQ has surged to new highs, while Bitcoin has underperformed by approximately 5%, emphasizing the widening performance gap [2][3]. Group 2: Drivers of Divergence - The rise of AI-driven tech stocks, such as Nvidia, Microsoft, and Apple, has propelled QQQ higher, while Bitcoin struggles to gain traction despite some institutional inflows [3][5]. - The market is recalibrating, with Bitcoin no longer acting solely as a proxy for risk-on trades, but instead behaving independently and sometimes trailing equities during tech rallies [4][6]. Group 3: Investor Strategy Insights - The divergence between QQQ and Bitcoin suggests that investors may be reallocating their strategies, favoring AI-fueled tech stocks over crypto assets [5][6]. - The widening gap serves as a reminder that the movements of crypto and equities are not always aligned, indicating a shift in investor sentiment and strategy [5][6].

As shown, the Nasdaq Composite returned an average of 281% during the seven bull markets since 1990, and it achieved those returns over an average of 1,817 days, which is approximately five years. That means the index compounded at 33% annually during the average bull market in the last 35 years.Past results are never a guarantee of future returns, but historical patterns can still provide valuable insight. So, the chart shows important facts about the last seven Nasdaq bull markets: when each one started, ...

Robert Brokamp: Why investors earn less than their funds and the small-cap surge? This is the Saturday Personal Finance edition of Motley Fool Money. I'm Robert Brokamp. This week, I speak with Morningstar's, Jeff Ptak, about research which finds that fund investors earn lower returns than the funds themselves. But first, let's hit a few highlights from last week in Money. The overall stock market has spent the past year and a half hitting new all time highs. It did run into a significant speed bump earlier ...

Core Insights - The Invesco QQQ ETF experienced a significant outflow of approximately $4.4 billion, representing a 1.2% decrease in shares outstanding week over week, from 641,200,000 to 633,600,000 [1] - Among the major components of QQQ, Microsoft Corporation saw a 1.2% increase, Apple Inc rose by 1.8%, while Alphabet Inc decreased by 0.5% [1] - The current share price of QQQ is $585.85, which is close to its 52-week high of $585.875 and significantly above its low of $402.39 [3] ETF Dynamics - ETFs, including QQQ, trade like stocks but involve "units" that can be created or destroyed based on investor demand, impacting the underlying holdings [4] - Monitoring week-over-week changes in shares outstanding helps identify ETFs with notable inflows or outflows, which can influence the individual components held within those ETFs [4]

Core Insights - The Nasdaq-100 index has proven to be an excellent investment over the past decade, significantly outperforming other benchmarks like the S&P 500 [1][2]. Performance Summary - A $1,000 investment in the Invesco QQQ Trust, which tracks the Nasdaq-100, would have grown to $6,280 over the last 10 years, reflecting a remarkable annualized total return of 20.2% [2]. - The Nasdaq-100 has outperformed the S&P 500 by 218 percentage points during the same period [2]. Factors Contributing to Performance - The Invesco QQQ Trust's success is attributed to its tracking of the Nasdaq-100, which has a significant concentration in large technology companies [4]. - The "Magnificent Seven" companies, which constitute only 7% of the index, account for 42% of the ETF's assets, highlighting the weight of major tech firms like Nvidia and Microsoft, each representing about 9% of the ETF [4]. - The concentrated portfolio of the Nasdaq-100 allows for a larger weight of large-cap tech stocks compared to the S&P 500, exemplified by Nvidia's 9.2% weight in the Invesco QQQ ETF versus less than 8.1% in the Vanguard S&P 500 ETF [6]. Future Outlook - The future performance of the Invesco QQQ ETF remains uncertain, but ongoing trends such as the AI boom may present interesting opportunities for investors [7].

Core Insights - The cryptocurrency market experienced a significant breakthrough with Bitcoin's price surpassing $120,000, driven by regulatory developments and market expectations [1][8] - The "Genius Act" stablecoin regulation, signed by President Trump, establishes new rules for stablecoin issuance, enhancing market confidence in stablecoins and decentralized platforms [1][3] Market Performance - The S&P 500 ETF (SPY) showed slight adjustments, trading around $627.6, while the Invesco QQQ ETF remained stable at approximately $561, indicating a cautious investor sentiment [1][3] - Bitcoin's price fluctuated between $118,000 and $120,000 after reaching a new high, with trading volume increasing, reflecting a combination of regulatory optimism and technical corrections [1][5] Regulatory Developments - The "Genius Act" was passed by Congress with a vote of 308 to 122, marking the first comprehensive federal legislation on stablecoins in the U.S., which includes provisions for issuance qualifications and consumer protections [3][6] - The act mandates that foreign stablecoin issuers must comply with U.S. regulations or seek exemptions, with detailed rules expected within 180 days and full implementation in 18 months [3][6] Market Sentiment and Trends - The overall cryptocurrency market capitalization surpassed $4 trillion, with notable increases in Ethereum (ETH) and Ripple (XRP), indicating a positive market sentiment driven by regulatory policies and capital influx [5][6] - The trading activity on decentralized platforms like XBIT is increasing, with a 50% rise in new user registrations, suggesting a growing interest in decentralized finance (DeFi) solutions [5][8] Future Outlook - The implementation of the "Genius Act" is expected to reshape the stablecoin trading ecosystem, potentially enhancing the use of stablecoins in payments and cross-border transactions [6][8] - Investors are advised to monitor the upcoming regulatory details and market conditions, as the next few months will be critical for the stablecoin framework's transition from legislation to practical application [8]

The Nasdaq-100 offers investors a great way to gain exposure to high-profile growth stocks.Investing in growth stocks can be a great way to generate outsize gains and bolster your portfolio. However, one of the more daunting aspects of investing is choosing individual stocks and figuring out when to cash out your positions. One way to mitigate these dynamics is through index funds, which provide a passive way to generate wealth through steady contributions and a long-run investment horizon.Let's explore why ...

Group 1: Market Overview - The Nasdaq is currently in correction territory, with the Nasdaq-100 index approximately 13% below its recent high, presenting opportunities for long-term investors [1] - The Invesco QQQ ETF, which tracks the Nasdaq-100 index, is a popular choice for investors looking to buy on the dip [2] Group 2: Investment Strategy - The Invesco QQQ ETF has a concentration issue, with nearly half of its assets in just nine companies, which may not align with a diversified investment strategy [3] - The largest stocks in the QQQ ETF are also major components of the S&P 500, leading some investors to prefer the Vanguard S&P 500 ETF for lower expense ratios [4] Group 3: Alternative ETFs - The Direxion Nasdaq-100 Equal Weight ETF (QQQE) offers a more balanced investment approach by allocating equal weight to all 100 stocks in the index, allowing smaller companies to have the same impact as larger ones [5] - The Ark Autonomous Technology and Robotics ETF (ARKQ) is an actively managed fund focusing on companies that are expected to benefit from the AI revolution, with a diverse portfolio of 36 companies [8] Group 4: Performance and Future Outlook - The Ark Autonomous Technology and Robotics ETF has seen a decline of about 23% from its January high, prompting interest in adding shares to capitalize on the dip [10] - Despite market volatility and potential economic challenges, there is confidence that both the QQQE and ARKQ ETFs will appreciate significantly over the long term [11]