On 26 Sep 2022 (Mon), it finally happened to US stock market. The S&P 500 notched a new 2022-low at end of trading day. While Dow Jones Industrial Average has slipped into bear market.
The singular tune that the Fed has been singing repeatedly - on delivering their sole objective to bring inflation back down to 2% by hook or by crook has more than done its job.
Recap of Monday's performances :
- Dow Jones : -1.11% (-329.60). Monday's worst performer.
- S&P 500 : -1.03% (-38.19).
- Nasdaq : -0.60% (-65.00).
Looking at the Pre-market indicators, have they factor the key economic updates for this week already ? What are they ? Refer to 2nd file attached please - tks.
Apart from monthly or quarterly reportings, Q3 results will be released progressively from this week onwards. ** NOTE : for most earning reportings - Q3 2022 results would not be favourable as predicted "in advanced" by many CEOs during Q2 2022 reportings. Some have even revised down Q3 results, resulting in the "Jun / Jul" mini-meltdown. Looks like US market is attempting again to test these "lows" once again.
Fri (30 Sep) PCE Price Index (Aug) will be an important report to watch. This is because the FED leans heavily on this report for overall inflation outcome. Supposed if there are clear signs that prices are stalling, the remaining two interest hikes may be lower ? Afterall, Chicago Federal Reserve President Charles Evans (speaking to CNBC’s “Squawk Box Europe”) did concur that the Fed didn’t seem to be waiting long enough to adequately assess the impact of its interest rate hikes. His exact words were "Well, I am a little nervous about exactly that".
Looking at the YTD Returns by Asset class Sep 2022, my investment strategy remains status quo. That is :
a. Financial services stocks - $Deutsche Bank AG(DB)$and $SoFi Technologies Inc.(SOFI)$.
b. Energy - $Cheniere(LNG)$
Everything else will have to wait until they are a little more settled. With two more interest hikes that will be coming our way; I think there will be more opportunities to pick up some more quality stocks along the way before 2022 comes to an end. Do you agree to this outlook ? Share your views and shares that you are monitoring and ready to pounce when the price is 'right'. Like to know your train of thoughts too. Like this article. Tks.
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