NASDAQ Sector Returns and Market Conditions

Abstract

This study compares stock returns for NASDAQ sector indices over varying market conditions. The results reveal that, during relatively shorter periods of time, some sectors have generated statistically significantly greater mean monthly returns than those of other sectors. However, for the overall recent ten-year period 1998 through 2007, there were no statistically significant differences between any two NASDAQ sectors. These results therefore indicate that individual long-term investors should not re-allocate funds among sectors based on varying short-term market conditions.