Why Going All-In on Nasdaq 100 Keeps Me Up at Night
This article analyzes 11 years of backtesting data (2014-2025) comparing 100% Nasdaq 100 allocation versus a three-asset portfolio (40% Nasdaq + 40% Asset A + 20% Asset B). Key findings: all-Nasdaq achieved 19.36% annualized returns but suffered -33.72% max drawdown lasting 714 days; the diversified portfolio delivered 16.99% returns with only -25.72% drawdown and 106-day recovery. Sortino Ratio improved from 0.8769 to 1.0261, proving asset allocation significantly reduces downside risk. Quarterly rebalancing further enhances returns and shortens drawdown periods—a sustainable strategy for ordinary investors. Investing involves risk.
