The Zacks’s Steady Investor – A Quick Look  

Featured Photo by Bram Naus on Unsplash

Let’s look at what is going on in the U.S. markets and the current Zacks’s view for investors to consider (as of Sunday, 9 October 2022).

  • U.S. Factory Activity Eases in September, as growth in the sector slowed to its lowest pace in two years. The Institute for Supply Management reported last week that U.S. factory activity fell to 50.9 in September from 52.8 in August, which is the lowest level since May 2020.
  • Inflation continues to stay persistent in the market, causing many investors to worry about how it may affect their investment portfolios.
  •  Airline and travel prices are already elevated due to soaring post-pandemic demand, rising price of jet fuel, and other inflationary forces. For domestic travel during the week of Thanksgiving, the average airfare costs $468, which is 48% higher than Thanksgiving 2021.
  • Weaker Data in the U.S. Labor Market Could be Good for Inflation and the Fed. Should these trends continue, wage pressures could ease which could in turn take some pressure off the Fed.
  • Calculating your net worth may give you a better idea of where you stand in terms of your long-term investment goals. 
  • all of the indexes are poised to close higher for the week with the Dow up 4.18%, the S&P up 4.43%, the Nasdaq up 4.71%, and the Russell 2000 up 5.27%.
  • There’s plenty of positives in the economy right now. The market’s seasonality: Q4 is typically the best quarter of the year for stocks, especially in midterm years. Q1, after midterms, is even better than Q4. And the third year in the presidential cycle (that’s 2023) is typically the best year out of all four years.
  • Valuations are low: they are at multiyear lows for the S&P and are below their 5-year average. And earnings season is right around the corner, which is good news since stocks typically go up during earnings season.
  • The stock market is setting up for a big buying opportunity in Q4. This Q4 Could Be Like 2018. The stock market would probably make a trip below S&P 3400 this quarter as higher rates ran into lower earnings (By: Kevin Cook October 8th, 2022).

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