Is QQQ a safe and stable investment?

QQQ is not a safe or stable investment, primarily due to its high beta value, which indicates that it is more volatile than the broader market.

1. Volatility: QQQ's beta value of 0.98 suggests that it exhibits volatility similar to the NASDAQ 100, indicating that it is not a low-risk investment.
2. Recent Performance: The ETF has experienced significant declines, with a death cross in March 2022 and a low point in October 2022. However, it has since rebounded, reaching an annual risky level in January 2024, suggesting that while it has stabilized, it is still not a stable investment.
3. Institutional Activity: There have been instances of institutional investors reducing their holdings in QQQ, which could indicate concerns about its stability and safety.

In conclusion, QQQ is not a safe or stable investment due to its high volatility and the recent fluctuations in its performance. It is important for investors to consider their risk tolerance and investment goals before making any decisions.