It’s been a long, testing year for investors.
A few lowlights:
Nevertheless, there are actually several reasons for investors to be thankful for this holiday season.
There are three things that set us apart:
One: Which recession?
It seems that economists have called for a recession all year.
However, the technical recession did not happen. In contrast, the economy is projected to grow a robust 4.3% in the fourth quarter, according to Atlanta Federal Reserve GDP.
Nobody wants a recession! So be thankful we are not together.
Two: The technical way is actually a good thing
It may seem counter-intuitive, but be thankful for the FAANG [Facebook/Meta, Amazon, Apple, Netflix, Google] The complex has lost billions of dollars in market value this year as the Federal Reserve moves to raise interest rates.
Why? Two reasons.
First, it taught investors a valuable lesson: Even powerful technology companies don’t have straight-line upward share prices forever.
Second, the stage is set for big rallies in these stocks over the next decade now that valuations have been removed and cost structures reset.
Three: Cheaper products are on the horizon
Be thankful that inflation has started to roll.
The latest CPI Index showed inflation rose 7.7% over the past twelve months, the smallest 12-month increase since the period ending January 2022.
According to economists’ calculations, the CPI Index is expected to slow down further in 2023.
As for Yahoo Finance, we thank you as a reader and user. Happy Thanksgiving!
Brian Sozzi is a senior editor and Host at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and continues LinkedIn.
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