Posted on 12/30/2022 8:44:13 AM PST by Red Badger
The Dow Jones Industrial Average slipped 220 points, or 0.7%. The S&P 500 shed 0.8%, while the Nasdaq Composite dropped 0.9%.
Friday marks the final day of trading of what’s been a painful year for stocks. A volatile bear market, sticky inflation, and aggressive rate hikes from the Federal Reserve battered growth and technology stocks. These factors also weighed on investor sentiment.
All three of the major averages are marching toward their worst year since 2008, slated to snap a three-year win streak. The Dow fared the best of the indexes in 2022, down 8.58% through Thursday, while the S&P and tech-heavy Nasdaq tumbled 19.24% and 33.03%, respectively.
As the calendar year turns the corner, some investors think the pain is far from over, and expect the bear market to persist until a recession hits or the Fed pivots. Some also project stocks will hit new lows before rebounding in the second half of 2023.
“We’re sort of stuck in neutral right now, because there are more unanswered questions than there are known entities. ... We’ve got a lot riding on this coming earnings season, when we think about the pressures that are going to exist on margins,” Rebecca Felton, senior market strategist at Riverfront Investment Group, said on “Squawk Box.”
“There are a lot of questions as we head into the new year, but we certainly will be happy to see 2022 go over,” Felton added.
Despite the yearly losses, the Dow and S&P 500 are on pace to snap three-quarter losing streaks. The tech-heavy Nasdaq, however, is on track for its fourth consecutive negative quarter for the first time since 2001.
Communication services stocks in the S&P 500 are down more than 40% on the year and consumer discretionary has fallen 37.4%, while energy, the large-cap index’s only positive sector, has soared nearly 58%.
Next week will see a slightly more active slate for economic data, highlighted by the nonfarm payrolls report set for Jan. 6. Financial markets are closed Monday in observance of the New Year’s Day holiday.
— Gabriel Cortes contributed reporting
Correction: A chart in this story has been updated to reflect the correct year-to-date decline for the Dow Jones Industrial Average.
I’m an optimist.
I think 2023 can do way worse than 2022.
Over a year ago, I moved my 3 Brokerage/IRA Accounts into cash, within each IRA (so no penalty) and the one Brokerage into cash back into my Savings Account, so I lost about 10%. They’re staying in cash, until Bidet&Co’s gone. Not making anything anymore, but not losing anything, further.
“Not making anything anymore, but not losing anything, further.“
Except for Bidenflation, of course!
Losing 10% annually on the cash due to inflation
Nice 401K you got there. It would be a shame if something happened to it. - Joe Biden
The 2023 new taxes should do some damages to the market in one form or another chain of events marches on.
“The Biden Plan is working.”
-Joe Biden
I figure inflation is closer to 17%, despite gov’t BS numbers. Just look at prices’ averages. So, in sum, I’m better off in cash, than in stocks, except for firearms and ammo stocks I still hold.
The stock market drops in 2022 doesn’t even begin to describe the crap economy we have. Of course, the government’s inflation index doesn’t include energy and good, and gee, guess where we had the most price spikes in 2022?
*food
If you had one last trade to make in 2022. What would it be. There are so many stocks that are at a low point. Would you buy a good dividend paying stocks or would you buy something like Google, APPLE, Amazon, or some oil company.
There are many 5% APY 1-2 yr CDs available now. That would slow the bleed.
With all my health problems, I have to take it year-by-year, so 2yr CDs aren’t in the picture. Iyr CDs might work; I’ll talk to my broker. Thanks; I didn’t know there were such low instruments as 1yr CDs.
I agree; way worse.
I would suggest putting money in a 6-12 month T-Bill, that is paying over 4.5%. I have been putting most of my cash in 6 month T-Bills that will provide cash if there is a buying opportunity later in the year.
But look at the bright side, no mean Tweets.
Oil stocks are not doing to bad....
Carriage Hill wrote: “Over a year ago, I moved my 3 Brokerage/IRA Accounts into cash, within each IRA (so no penalty) and the one Brokerage into cash back into my Savings Account, so I lost about 10%. They’re staying in cash, until Bidet&Co’s gone. Not making anything anymore, but not losing anything, further.”
Schwab Money Market (SWVXX) paying over 4%.
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