$1.3 Trillion Lost in Brutal Week
"A day after celebrating the Federal Reserve’s signal that it wouldn’t be making any jumbo-sized moves, traders woke up on Thursday deciding that the central bank will struggle to fight high inflation amid the lingering threat of a recession.
In a sharp about-face, investors sold stocks, bonds and cryptocurrencies on Thursday. The S&P 500 Index lost 3.6 per cent, erasing about US$1.3 trillion of market value, and the tech-heavy Nasdaq 100 dropped 5.1 per cent, the most since September 2020." - read more on BNN here
Volatility Continues in Futures Markets on Fed and China Lockdowns
"U.S. equity futures and stocks fell anew Monday and the dollar climbed as high inflation, monetary tightening and the prospect of an economic slowdown spurred another bout of risk aversion.
S&P 500 and Nasdaq 100 contracts shed over 1%, Japan led an Asian stock gauge lower and sovereign debt was under pressure -- providing little respite after the fifth straight weekly decline in global shares and bonds." - read more on Bloomberg here
Breaking Thoughts: For investors already in the market, its been a brutal few months. These are the times when owning high quality firms, firms that pay dividends and utilizing strategies such as dollar cost averaging pay off for the long run. Consider tax loss harvesting some of what you believe are the weakest companies in your portfolio, and stay consistent with your buying strategy.
For investors thinking about entering the market for the first time, these prices are a gift but the volatility is not. Consider holding off until things stabilize or begin investing small amounts of your total savings, so that if things fall further you can buy more at lower prices (dollar cost average strategy).
Overall, the issues (inflation, supply chain, wars, pandemic) are severe, but can be quickly reversed as well. So this could prove to be a temporary blip as much as it may be the start of a new bear market.
For most investors the seeds of success are sown during bear markets. Good luck out there.
Major Earnings This Week
Monday May 9:
AECOM (ACM): Expected Q2 earnings of $0.78 per share
Groupon (GRPN): Expected Q1 earnings of $-0.52 per share
Palantir (PLTR): Expected Q1 earnings of $0.04 per share
Vroom (VRM): Expected Q1 earnings of $-1.01 per share
Tuesday May 10:
Coinbase (COIN): Expected Q1 earnings of $0.18 per share
Coupang (CPNG): Expected Q1 earnings of $-0.17 per share
Electronic Arts (EA): Expected Q4 earnings of $1.44 per share
Embark Technology (EMBK): Expected Q1 earnings of $-0.08 per share
Roblox (RBLX): Expected Q1 earnings of $-0.22 per share
SoFi Technologies (SOFI): Expected Q1 earnings of $-0.70 per share
Sony (SONY): Expected Q4 earnings of $0.86 per share
Wednesday May 11:
Beyond Meat (BYND): Expected Q1 earnings of $-1.02 per share
Bumble (BMBL): Expected Q1 earnings of $-0.03 per share
Canada Goose (GOOS): Expected Q4 earnings of $-0.02 per share
Manulife Financial (MFC): Expected Q1 earnings of $0.82 per share
Sunlife Financial (SLF): Expected Q1 earnings of $1.41 per share
Walt Disney (DIS): Expected Q2 earnings of $1.19 per share
Thursday May 12:
Affirm (AFRM): Expected Q3 earnings of $-0.53 per share
Aurora Cannabis (ACB): Expected Q3 earnings of $-0.23 per share
Docebo (DCBO): Expected Q1 earnings of $-0.02 per share
Mogo (MOGO): Expected Q1 earnings of $-0.15 per share
Major IPOs Expected This Week
None
See you next week!
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The Market News Reel for this week! Get the most important market news & updates for the week ahead! Major headlines, excerpts from news sources are shown above. "Breaking Thoughts" section is purely our opinion.