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.
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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