Photo by Yiorgos Ntrahas on Unsplash
As we move into the final quarter of 2022, some still remain hopeful for a year-end rally, here are some reasons why:
Current valuations are cheap. For those aren't aware, Valuation = Price / Earnings, and this is actually a good thing as investors eye to buy good companies at cheaper prices
Market may be numbed by the past few months of Fed actions, and the only surprise that can happen is if Fed reverse their stance on the interest rate
Technicals generally show a down trend in Sep with all eyes on reversal in Oct
Uncertainty definitely remains high, so don't take the above as financial advice. More importantly, risk manage your portfolio, invest in quality picks after you do your due diligence and be clear on your investment time horizon to avoid losing the forest for the trees in the longer run.
