The Nasdaq Composite hit another record high on Monday to kick off the holiday week, with the tech-heavy index now on pace to finish the year up well over 30%. That has happened before. In fact, over the past 25 years, the Nasdaq has jumped 30% or more in a year on six other occasions. Following those annual periods, the next year's Nasdaq return has been solid, if not spectacular.
The Nasdaq has average a return of approximately 12% in the years after 30%-plus gains, trading positively 83% of the time, according to a CNBC analysis of hedge fund trading tool Kensho. The S&P infotech sector, tracked by the Technology Select Sector SPDR ETF, also has averaged about 12% in the yeas after a huge run for the Nasdaq.
Both tech-heavy indexes outperform the S&P 500, which adds about 10% the next year.
