3 things investors should be thankful for


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.

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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.

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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.

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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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This image was created by Yahoo Finance using Dall-E image software. (Open AI)


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