Hello you very intelligent and amazing people that make up these forums, i do hope you are doing well and staying positive.
I know that many US stocks have started to recover slightly from an awful year in the markets for 2022. I have been trying to look for sectors that have a good chance of recovering this year and doing some further research on specific stocks. I was looking at the sectors such as hospitality and leisure stocks initially. Does anyone kindly please have any advice on what stocks/sectors could recover over the next few years please the most? For instance would technology stocks kindly still be risky as these seem to have been massively overvalued since Coronavirus happened? If anyone had time to get back to me on this i would be forever grateful.
Thank you so much for your time and support. I do hope you have a pleasant and relaxing weekend whatever your plans are. Very best wishes.
Based on your post you may want to avoid discretionary sectors like hospitality and leisure.
As household incomes gets squeezed by inflation and higher borrowing cost means disposable income may not be enough to cover basic human needs before considering non essentials.
However there are group of people who would cut down on essentials or defer paying bills to ensure holidays happen
I know I am probably in the minority here but I believe the whole market is in a dead cat bounce. We will see another new inflation peak if the fed pivots followed by more pain. Or if the FED stays strong in the next 12-18 months then we will see the continuation of the dead cat bounce, because I think the market is priced for FED pivot. Either way more pain is coming either short term or midterm.
The only way we enter a new bull market is if somehow magically inflation is reduced considerably and FED starts to stimulate again.
Just can’t see how else this could happen.
Like the sheer number of possible black swan events which are quite likely actually right now are a serious threat for global markets. Anyway what do I know, that’s how I see it. Cheers. Keep your eyes on the prize
