NASDAQ 100’s 1,631% Run Is Why the Report Is Rotating Out of DIA
In June and July this report leaned on DIA, the DJIA ETF, as a safe haven while AI stocks looked overextended. Today it reverses that call directly: with the danger zone passed, it’s time to rotate back into NASDAQ.
The case is a 20-year table on page one. $1,716 put into NASDAQ 100 in January 2006 would be worth $29,695 today, a gain of 1,631%, easily outpacing NASDAQ Composite’s 1,089%, the S&P 500’s 512%, and DJIA’s 404% over the same stretch. Even measured from 2016 alone, NASDAQ 100’s 561% still leads every other major index.
The report is careful not to sell this as easy money. Turning $1,716 into $29,695 takes what it calls kung fu, discipline and guidance built over years, not a lucky index pick, and it points to Warren Buffett’s 2007 bet against Wall Street hedge funds, over ten years his simple S&P index fund returned 7 to 8%, while Ted Seides’s fund of funds managed only 2%, as proof that even professionals routinely underperform a plain index.
Underneath the rotation call sits today’s actual test, the US inflation report due this Wednesday, which HSBC says could feed a Fed rate-hike narrative and reinforce its view that American exceptionalism is fading, right as Trump also raised the stakes by demanding Iran pay war reparations in any future peace deal.
The math says NASDAQ 100 has been the best trade for twenty years running. Today’s inflation number decides whether that streak gets easier or harder from here.
Full report available via the download button below. Read previous US Stock Express editions here.
US Stock Express 20260812 NASDAQ 100 S&P DJIA
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.