Investors have little to be thankful for in 2022

The S&P 500 has plunged 17% this year, and the tech-heavy Nasdaq is down nearly 30%, putting it in a bear market. Cryptocurrencies have collapsed. asset management company (asset management company), Bed bath and others (BBY) and other meme stocks have crashed. The real estate market is starting to show signs of strain. There is nothing to cheer about in this market and economy.

“2022 is a timely reminder that volatility is a feature of financial markets, not a bug,” said Scott Clemons, BBH chief investment strategist. “We enjoyed upside volatility from 2020 to 2021, and 2022 reminds us that Sometimes it goes up and sometimes it goes down.”

But Thanksgiving is supposed to be a happy time, so how about we take a look at some of the highlights on the market this year?

There is a saying on Wall Street that there is always a bull market. The same is true this year. Oil stocks have been big winners this year as crude prices soared … boosting sales and profits.

This S&P Energy Select SPDR ETF (XLE) up nearly 65%. Warren Buffett/Berkshire Hathaway (BRKB)-support western petroleum corp. (oxygen) It led the gains for the S&P 500, which has more than doubled this year. Chevron (CVX) is the No. 1 stock in the Dow, soaring about 55%.
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What’s more, many big oil companies are further rewarding investors by increasing their dividends, as fund manager Janus Henderson noted in a recent report: “Surging energy prices have driven big increases in dividends…  .as oil companies distributed record profits to shareholders,” the company wrote.

Janus Henderson said total energy stocks dividend payments rose 7% to nearly $416 billion in the third quarter… 90% of oil companies either raised their dividends or held steady, with some energy companies opting to pay one-time special dividends.

That could raise further concerns among politicians who want to tax oil companies’ windfall profits. For now at least, energy investors are reaping the rewards.

Of course, dividend-paying stocks aren’t the only way for investors to get more cash this year. The bond market has been a lucrative source of income as rising U.S. and global interest rates push up yields.

Buy bonds and short stocks?

“Investors may be getting caught up in the stock market euphoria, but now is the time to focus on the bond market,” Ally senior market strategist Brian Overby said in a note, noting that investment-grade corporate fixed income is yielding more than 5.5%. , not far from the highest level since 2009.

Overby added that short-dated U.S. Treasuries are good value, yielding more than 4%. There are also opportunities for investors looking for more risk…and potential reward.

“Volatile parts of the bond market, such as U.S. speculative-grade fixed income and emerging market bonds, are yielding in the high single digits,” Overby wrote.

Finally, investors who bet be opposed to The stock market can also thank for volatility this year. … what is there to be thankful for?

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Short sellers, who borrow shares and sell them in hopes of buying them back at a lower price and profiting from the difference when they return the shares to their lenders, have a lot to be thankful for.

Shorting is an inherently risky strategy, though not for the faint of heart. But there are also ETFs that make it easier for ordinary investors to short the market, and they’ve been big winners this year.One ProShares ETFs (Shanghai) Companies shorting the S&P 500 are up nearly 15% in 2022, while ETF Short Nasdaq 100 (PSQ) Soared 28%.
Bearish investors who are further shorting crypto-related stocks are doing even better in 2022, especially after former crypto king FTX plummeted.

“Shorting crypto stocks has been a profitable trade in 2022, with short sellers up almost 90% this year,” said Ihor Dusaniwsky, managing director of predictive analytics at research firm S3 Partners.

Dusaniwsky noted that crypto short sellers are up nearly 10% in November alone, with much of the short selling concentrated in Square owner Block and Coinbase.shares jam (the square of)Coinbase, run by former Twitter CEO Jack Dorsey, has plunged nearly 60% this year, while Coinbase has plunged more than 80%.

Technological achievements on deck

It’s not just cryptocurrencies that have had a rough year. The tech sector as a whole is underperforming, and when several tech companies report earnings this holiday-shortened week, investors will be looking for any sign that 2023 will be better. (Wall Street is closed on Thursday for Thanksgiving and the trading day is shortened on Black Friday.)

video conferencing leader soaring (Z M) Results will be reported on Monday. Analysts forecast a drop in revenue, with sales up just 5% from a year ago.
The company no longer enjoyed the boom it experienced at the start of the pandemic in 2020 as more employees returned to the office. The stock has plunged more than 55% this year.
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pc giant Dell (Dell) and life value (HPQ) Results are due to be reported this week. Desktops and laptops may no longer be as popular with average consumers as they were before the era of smartphones and tablets, but the two companies still generate a lot of revenue for so-called enterprise customers.

So it will be interesting to see if Dell and HP benefit from the same back-to-work trends that hurt Zoom. Their current quarter is not expected to be strong, but their outlook could hold the key to the market’s next move.

Analysts forecast revenue and profits for both companies to decline from a year ago. Shares of Dell and HP are both down more than 20% this year.


on Monday: China sets prime lending rate; proceeds come from Smack (SJM)Dell, Agilent (One) and zoom
Tuesday: income from baidu (baidu), Best Buy (bibi), Medtronic (MDT), dollar tree (DLTR), analog device (Analog Devices), Dick’s Sporting Goods (distributed control system), Abercrombie & Fitch (ANF)HP and Nordstrom (JWN)
Wednesday: Eurozone and UK PMI flashes; US weekly jobless claims; US durable goods, US new home sales; University of Michigan consumer sentiment; Fed minutes; Gains from Dill (Germany)

Thursday: U.S. markets closed for Thanksgiving

Friday: U.S. stocks close at 1 p.m. ET on Black Friday; Japan CPI

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