Early this week, the market found a short-term bottom as positive results from earnings season momentarily shifted mentality.
From the previous Thursday’s low through Wednesday morning, the S&P 500 gained 5.72%. Over the same period, the Russell rose 6.16% and the Dow 6.22%.
Surprisingly, the rally was led by consumer discretionary stocks, which historically lag amid inflationary conditions. But consumer spending is showing resilience in the face of 40-year high inflation.
Nonetheless, as investors have seen time and again this year, the rally was short-lived. By Wednesday afternoon, the Dow was down 162 points after previously being ahead by 190 points.
This came on the back of weak housing data and nearly 7% mortgage rates:
- Single-family home starts dropped 8.1% month over month and reached their lowest level in two years.
- Home sales and builder sentiment continue to decline.
- And mortgage applications slumped to their lowest level since 1997.
Despite the market’s ongoing uncertainty, profitable short-, medium- and long-term investments can still be found anywhere from value stocks and inverse exchange-traded funds to fractional shares and battery metal miners.
Here are this week’s top stories from our team of editors and analysts …
With holiday season around the corner, big-box retailers are likely to see outsized Q4 sales increases. Managing Editor Jordan Chussler breaks down the big three to see which is most likely to provide the best investor return.
VIDEO: Make Volatility Work for You
Volatility may be here for the long haul, but it could benefit your portfolio. In this segment, Financial News Anchor Jessica Borg interviews Investment Analyst Nilus Mattive about a winning exchange-traded fund and a platform that allows fractional investing in unique assets.
Forget Halloween, Christmas Profits Are Here
Video games have become an enormous industry, with 3.5 billion people playing them. Senior Editor Tony Sagami reports on how gaming is generating enormous revenue and how investors can best position themselves to profit from the ongoing trend.
VIDEO: Market Minute With Kenny Polcari
With President Biden regulating chip exports to hinder China’s capabilities, numerous companies in that sector — ones that are already down 50%+ year to date — are bound to feel the impact. However, short-term problems create opportunities with long-term value. Kenny Polcari, host of Wealth & Wisdom, explains.
How to Play the Battery Metals Megatrend
A total of 4.3 million new electric vehicles were delivered during the first half of 2022 — a year-over-year increase of 62%. EV demand is the main driver of battery metals, and Senior Analyst Sean Brodrick discusses how both can be part of your portfolio.
Until next time,
Jordan Chussler
Managing Editor
Weiss Ratings Daily
