The Nasdaq 100 index has been on a bull market run for quite some time now, despite the elevated risks that come with it. The index, which is made up of the top 100 non-financial companies listed on the Nasdaq stock exchange, has seen a surge in value over the past year, with gains of over 40% since the start of 2020.
One of the main drivers of this bull market has been the rise of technology companies, which make up a significant portion of the Nasdaq 100 index. These companies have been able to thrive in the current environment, as the pandemic has accelerated the shift towards digitalization and remote work.
However, this bull market run has not been without its risks. One of the biggest concerns is the potential for a market correction, as the current valuations of many of these companies are quite high. Additionally, there is the risk of inflation, which could lead to higher interest rates and a slowdown in economic growth.
Despite these risks, many investors remain bullish on the Nasdaq 100 index. They believe that the long-term growth potential of these companies outweighs the short-term risks, and that the current market conditions are favorable for continued gains.
Overall, the Nasdaq 100 index bull market is gaining steam, but investors should remain cautious and keep an eye on the potential risks. By staying informed and making informed investment decisions, investors can take advantage of the opportunities presented by this bull market while minimizing their exposure to potential downside risks.