Market Map Model: Using Nasdaq Composite And Nasdaq 100 Index

In our first article, we listed low cost Exchange Traded Funds that could be utilized by the Market Map models during equity allocation periods; one of those ETF’s being the Powershares QQQ Trust ETF (QQQ). We believe that the constituent companies that make up the Nasdaq 100 index represent many of the best growth company investment opportunities available with the advantage of the index having a 27+ year track record and pricing history. In this article, we will input data for the Nasdaq 100 index (NDX) into the Market Map allocation signaling record as it is the underlying proxy for the QQQ ETF. And, in order to achieve more robust testing, we also employed the Nasdaq Composite index from 1962 through 1987 (as the NDX historical price history starts in 1985).

Going forward, in order to avoid redundancy in presenting historical entry and exit data output from the Market Map model, we will only present the applicable statistics tables. Readers can reference the data for MMap models entry and exit tables in the previous articles here seekingalpha.com/article/1725902-market-map-model-1-tactical-asset-allocation-using-low-expense-index-etfs .

Performance Statistics 1962 – 2013:

Model -stats- Nasdaq 1962

2000 – 2013:

NDX stats Map 2000 - 2013

Model NDX SPX 25 yrs 1989 - 2013

 

As expected utilizing the smaller/mid cap growth stock universe in the model, as represented by the Nasdaq Composite and Nasdaq 100 indices, provide the best returns so far, albeit with more volatility. In our next post, we will implement a Fama and French value portfolio into the Market Map model.

 

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