This has been a long and difficult year for investors.
A few lows:
Nevertheless, there are in fact some reasons for investors to be thankful this holiday season.
Here are three things that stand out to us:
One: which recession?
It seems economists have been calling for a recession all year.
But a technical recession has not happened. On the contrary, according to the Atlanta Federal Reserve’s GDP, the economy will grow by 4.3% in the fourth quarter.
Nobody wants recessions! So be thankful we’re not in one.
Two: the technical defeat, which is actually a good thing
This may seem counterintuitive, but be thankful that the FAANG [Facebook/Meta, Amazon, Apple, Netflix, Google] complex has lost billions of dollars in market value this year as the Federal Reserve raised interest rates.
Why? Two reasons.
First, it taught investors a valuable lesson: Even powerful tech companies don’t have stock prices that rise in a straight line forever.
Second, the foundations are likely to be laid for major rallies in these stocks over the next decade as valuations have washed away and cost structures have been reset.
Three: cheaper things are on the horizon
Be thankful that inflation is starting to roll.
The most recent CPI index showed inflation rising by 7.7% over the past 12 months, the smallest increase in 12 months since the period ending January 2022.
Economists estimate that the CPI index is expected to slow further in 2023.
As for Yahoo Finance, we are grateful to you as a reader and user. Happy Thanksgiving!
Brian Sozzi is editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and further LinkedIn.
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