The market’s been on a roller-coaster ride recently, and it’s giving a lot of investors whiplash.
As energy soared earlier this year, it was the clear-cut leader of all sectors. Now, it’s pulled back big-time … but it’s still hard to make a case that isn’t bullish.
Recession chatter’s increasing (whether it’s accurate or not is irrelevant), which props up sectors like utilities and consumer staples — those that provide people’s needs as opposed to their wants. But over the past month, it’s consumer discretionary and its nonessential offerings that’s leading the S&P 500 higher.
Unemployment is at 3.5%, which rivals historic lows … but consumer confidence is in the dumps because inflation is eroding wages.
It’s no wonder why it seems increasingly difficult for investors to nail down the right stock … or even the right sector, for that matter. With fears of the double-headed dragon — inflation and recession — wreaking havoc on the economy, the market’s feeling the heat.
But as tough as the situation may seem right now, it’s not hopeless. Far from it, actually … There’s still a lot of opportunity and a lot of money being made by savvy investors who know where to look and where to invest.
That’s exactly what I’ve been focusing most of my research on lately, so I can tell investors about the stocks, exchange-traded funds and sectors their portfolio could potentially benefit from amid the mess that is the 2022 markets.
To make it easier for you — and in case you missed any of them — I’ve rounded up my latest issues for you to check out below …
The Senate’s passing of the Inflation Reduction Act over the weekend means an enormous chunk of the bill — and $430 billion in new spending — supports the electric vehicle and clean energy sector. And that’s good news for these clean energy plays.
Is a Different Kind of Inflation Shock Coming?
It seems anything’s possible in this environment, so it shouldn’t shock you if I tell you inflation may be cooling off and a different kind of inflation shock — a downside surprise — is coming. As always, I have a good idea for how investors can play this.
The Safest Place for Investors
While investors anticipate more Federal Reserve rate hikes, a possible recession and a market shakeout, savvy investors should look to this haven in stocks. Your money will not only be safe, but you could potentially make some hefty gains in the interim.
The market is looking for the Fed to change course at some point. If the tightening eases, stocks will face less resistance. Growing recessionary risks are a warning signal for investors to be more vigilant. In a bearish market, these are the tried- and-tested positions investors should be looking for.
There you have it! A roundup of my latest issues to ensure you’re getting the most out of my Wealth Wave research as we all do our best to navigate these choppy economic conditions.
Rest assured that with the right knowledge and guidance, we’ll come out the other side. I’ll have more for you next week.
Best wishes,
Sean
