Since this decade began, all three major stock indexes have alternated between bull and bear markets, with the growth stock-driven Nasdaq Composite oscillating the wildest. After losing 33% of its value during the 2022 bear market, the innovation-fueled index has surged higher by 35% on a year-to-date basis through the closing bell on Nov. 16.
Despite this rally, the Nasdaq Composite remains 12% below its record-closing high from two years prior. While short-term traders are likely to view this two-year stretch as a lost period for growth stocks, it represents a moment of opportunity for long-term investors to pounce on high-quality companies at a discount. After all, every downturn in the major stock indexes, including the Nasdaq Composite, has eventually been cleared away by a bull market rally.
This post originally appeared at The Motley Fool.