The third quarter of 2022 seemed like a pain zone. We saw financial assets of many of the funds and my dad’s 401K take a hit. Its more of an “ouch it hurts kinda hit”. We are in a market where only “Cash is King” and the any market category can be a hit or a miss. While tech saw some modest gains overall, commodity prices came negative. Our friends at the Fed gave us a third-rate hike of 75bps. I am still not sure why they are trickling these and creating volatility in the market. I think they should just do a big 300bps and get done with it. The current slow roast approach may result in the fed not being able to get what it wants namely “control Inflation”. The retail traders are getting numb to these hikes. I think the fed is wrong with its approach. Who am I to say anything…I am just a simple 16-year-old who want to do good.
While a few U.S. large and small cap equities found little relief in Q3, the quarter was marked with a few Wall Street Darlings companies posting negative returns. Rising inflation not only in US but across Europe and Asia, particularly China weighed on the markets.
While Q4 2022 looks like another rough quarter, investors should not hole up totally and feel depressed. The truth is that S&P 500 is still doing ok/well considering the negative sentiment in the market. Attractive valuations plus elevated interest rate and should be make investors happy as they are creating some amazing investment opportunities. My suggestion is to stay connected, watch yourself and educate yourself. Your best trades still await you