The Nasdaq Composite rebounded after a crash earlier this year, entering its seventh bull market since 1990. It has advanced 47% in the current bull market, with an average return of 281% in previous bull markets. The index currently trades at 35 times earnings, a premium to the 10-year average of 26 times earnings.

The Nasdaq-100, which tracks the 100 largest non-financial stocks in the Nasdaq Composite, is heavily weighted towards technology stocks and currently trades at a premium to historical valuations. The Invesco QQQ ETF, which tracks the Nasdaq-100, has returned 1,330% since its inception in 1999.

History suggests the Nasdaq Composite could surge 31% in the next year, based on past performance during bull markets. The Invesco QQQ ETF is a good option for investors seeking exposure to growth stocks, especially in technology, although elevated valuations may impact future returns.

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Read more at Nasdaq: The Stock Market Is Doing Something for the 7th Time Since 1990 — It Hints at a Very Big Move in the Next Year