This has been a long, trying year for investors.
A few lowlights:
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 calling for a recession all year.
But a technical recession hasn’t happened. On the contrary, according to the Atlanta Federal Reserve GDP, 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.
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.
Three: Cheaper stuff is on the horizon
Be thankful that inflation has started to roll over.
The latest CPI Index 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 Yahoo Finance, we are thankful to you as a reader and user. Happy Thanksgiving!
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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