Bear Market Bottom Gameplan
Plus, Grab sees no mass layoffs.
Today is Monday, September 26, 2022.
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Bear Market Bottom Gameplan
The stock market hit a new 2022 low on Friday, as investors struggle to figure out what to do next.
Numbers: The S&P 500 is down 23% this year, including a 10% drop in the last two weeks. The Dow Jones Industrial Average is down 19% this year, along with an 8% decline in the last two weeks. The Nasdaq is down 31% this year, including an 11% drop in the last two weeks.
Catalyst: Analysts say that the recent troubles in the stock market can be attributed to rising interest rates from the Federal Reserve, which were enacted in order to fight inflation. Higher treasury yields and interest rates have been destructive for the market, especially for technology stocks or riskier assets. Combined with rising inflation and supply chain challenges, some companies are struggling.
Nowhere to Hide: Traditionally, investors would avoid a volatile market by sticking to safer investments such as bonds or gold. But both bonds and gold have been rattled this year. Gold has been flustered by both rising rates and a stronger U.S. dollar. In addition, alternative investments such as real estate and cryptocurrency have fallen in 2022.
Rock Bottom: Bullish investors hope that we might have already bottomed, but we don’t know for sure. A price-to-earnings (P/E) ratio could indicate a bottom, but that method is less than perfect. And if it is accurate, the P/E ratio shows that we still have room to fall.
What’s Next: Analysts point to more volatility coupled with higher interest rates. Expect some companies to lower their revenue outlooks.
Final Thoughts: The strategy for combating this bear market really depends on if an investor is looking at things in the short term or long term. Value stocks might be fine, but all investors should expect more volatility and more rate hikes.
Notable Earnings Today: N/A.
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Gumbo to Geaux (Honeycomb), Thomas & Wynter (Republic), ALL3D (Republic), Boichik Bagels (SMBX), Jane West (Mainvest), Regard Libations (Honeycomb), Track Time Hobbies (Honeycomb), MindWise (MicroVentures), Fishies (Honeycomb).
Notable Economic Events Today: N/A.
Grab Doesn’t Expect Mass Layoffs
Ride-hailing and food delivery company Grab (Nasdaq: GRAB) doesn’t anticipate having mass layoffs like other companies, according to a report from Reuters on Sunday.
Stock Price: Shares of Grab are down 77% since going public in 2020, including a 61% drop this year.
Final Thoughts: Grab will host its Investor Day tomorrow at 8:00 a.m.
Equity Crowdfunding Spotlight: Vorsheer
Briefly describe your business. Vorsheer - We hand build an off-road trailer.
What are the terms of the investment for your campaign? Reg CF. $1.00/share with $250 minimum on StartEngine.
What makes your startup special? We have a unique product that is in high demand.
Trends to Watch
Not All the Same: How Crypto Sectors Are Trading Through the Dollar Strength 'Tsunami' (CoinDesk)
Hit the Brakes: Slide in Transportation Stocks Flashes Warning About Economy (The Wall Street Journal)
Who’s Afraid of the Recession: Stock Traders Brace for a Steeper Dive as Fed Ups Recession Fear (Bloomberg)
Balancing Act: Atlanta Fed President Bostic expects job losses but says there’s a really good chance to get to 2% inflation without killing the economy (CNBC)
Awful Week: Bitcoin risks worst weekly close since 2020 as BTC price dices with $19K (Cointelegraph)
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