3 things investors should be thankful for

This has been a long, trying year for investors.

A few lowlights:

  • Crypto got blown up at the hands of .

  • Meta’s stock has crashed, and the once untouchable tech company.

  • , and is in free-fall as a result.

  • The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 are struggling in 2022 (recent risk-on rallies notwithstanding).

Nevertheless, there are in fact a few reasons for investors to be thankful this holiday season.

Here are three things that stand out to us:

One: What recession?

It seems like economists have been a recession all year.

But a technical recession hasn’t happened. On the contrary, , the economy is slated to grow a robust 4.3% in the fourth quarter.

Nobody wants recessions! So be thankful we aren’t in one.

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Two: The tech rout, 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 has moved to hike interest rates.

Why? Two reasons.

First, it taught investors a valuable lesson: Even mighty tech companies don’t have stock prices that go up in a straight line forever.

Second, the ground is arguably set for big rallies in these stocks over the next decade now that valuations have been flushed and cost structures reset.

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Three: Cheaper stuff is on the horizon

Be thankful that inflation has started to roll over.

showed that inflation grew 7.7% over the past twelve months, the smallest 12-month increase since the period ending Jan. 2022.

The CPI Index is expected to slow further in 2023, according to economist estimates.

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As for Iheart Finance, we are thankful to you as a reader and user. Happy Thanksgiving!

is an editor-at-large and . Follow Sozzi on Twitter and on .

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