QQQM - QQQ: Not Buying Hand Over Fist Yet But There Are Reasons To Be Optimistic

• The Invesco QQQ Trust lost 28% over the last six months, lagging the S&P 500 by 12%. I've been monitoring valuations and earnings results, looking for an excuse to buy.
• I'm careful not to issue "buy the dip" recommendations based on recent price action alone. Indexes don't follow some pre-determined path that can be fully explained by technicals. Fundamentals matter.
• The combination of poor earnings results and higher interest rates triggered the recent selloff. However, there are reasons for optimism. Q1 earnings season wasn't nearly as bad as you think.
• QQQ's valuation premium over SPY has also decreased to a palatable level. It's not yet at my target, and more downside is possible, but QQQ should be on most investors' buy list soon.
• I reiterate my hold rating on QQQ, but am eagerly awaiting Q2 earnings season. If earnings and revenue surprises trend in the right direction again, expect a buy recommendation.

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