Worst. Bond Market. Ever.
Welcome to my weekly Morningstar markets and investing newsletter! To sign up for the email version, scroll to the bottom of this post.
In this week’s newsletter:
- Signs to Watch for a Stock Market Bottom
- 3 Warren Buffett Stocks to Buy
- 14 Undervalued Stocks That Are Bear Market Winners
- The Worst Bond Market Ever
The holiday season is always a good time to pause and reflect. Think back to how so many of us were feeling at this point in 2020. We couldn’t wait to get the rest of the year over with and start fresh.
Well, it’s feeling a lot like 2022 is the 2020 of investing years for both stocks and bonds - and especially bonds. (We’ll put aside what that means for a 2021/2023 comparison for now.)
However, sentiment in both the bond and stock markets has been feeling a little bit better lately. The stock market is still down 17% this year, but hey, it’s up about 12% from the bottom. So, is the worst over? I took a look at three signs to watch that could offer some clarity on whether stocks have seen their worst. (And while you’re checking out this story, you’ll see it’s part of our regular Monday Markets Brief series, designed to catch you up on which stocks have been posting big moves, and key upcoming events for the market.)
For long-term investors, big market declines are opportunities. No one has done this better than Warren Buffett. The legendary investor made a big splash earlier this month with a new investment in battered shares of Taiwan Semiconductor Manufacturing, and we’ve pulled together a list of undervalued stocks that are among the top holdings of Berkshire Hathaway. And for a great read, along with more articles on Buffett, check out our “How to Invest Like Warren Buffett” guide from Susan Dziubinski.
We’ve got three other stock picking articles for your holiday weekend, starting with Lauren Solberg’s look at why biotech stocks have been performing well of late, and which ones our analysts think have real potential. Sandy Ward highlights how traditional advertising agency stocks are weathering the storm better than the big online ad names (such as Meta), and Jakir Hossain screens for stocks that are up more than 10% this year, but are still cheap.
Then there’s the reality of where we’ve been. John Rekenthaler compares the drubbing that stocks and bonds have taken this year. The odd thing about this 2020-level of doom and gloom for investors is that stocks have actually been ballast in many investors’ portfolios, not bonds. Check out John’s lessons from this year’s performance here.
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