3 things investors should be thankful for

It’s been a long and trying year for investors.

A few low lights:

However, there are actually several reasons for investors to be thankful this holiday season.

Here are three things that stand out to us:

First: What recession?

Economists seem to have been calls for recession throughout the year.

But a technical recession has not happened. On the contrary, according to Atlanta Federal Reserve GDPthe economy is expected to grow at a steady 4.3% in the fourth quarter.

Nobody wants recessions! So be thankful we’re not in one.

Second: the technology path, which is actually a good thing

This may seem illogical, but be thankful that FAANG [Facebook/Meta, Amazon, Apple, Netflix, Google] the complex has lost billions of dollars in market value this year as the Federal Reserve has moved to raise interest rates.

Why? Two reasons.

First, it taught investors a valuable lesson: Even powerful tech companies don’t have share prices that go up forever in a straight line.

Second, the stage is arguably set for a big run-up in these stocks over the next decade once valuations have been revised and cost structures reset.

Three: Cheaper stuff is on the horizon

Be thankful that inflation has started to turn around.

The latest CPI index showed that inflation rose 7.7% over the past twelve months, the smallest 12-month increase since the period ending January 2022.

The CPI is expected to slow further in 2023, according to economists’ estimates.

As for Yahoo Finance, we are grateful to you as a reader and user. Happy Thanksgiving!

Brian Sozzi is editor-in-chief and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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This image was created by Yahoo Finance using Dall-E image software.  (OpenAI)

This image was created by Yahoo Finance using Dall-E image software. (OpenAI)

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