Previewing What We Expect To Happen In The Markets
November 8, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Jake Sanders, and I am a partner at Wealth E&P and operate as a Wealth Advisor and Certified Financial Planner.
I just wanted to start by saying congratulations! Hopefully, by the time you’re reading this, you are done seeing the incessant political advertisements that have been leading up to the midterm elections over the last several months. With that, what do we expect next for the markets? Cody Moore, Wealth Advisor at Wealth E&P, touched on this a bit last week.
Regardless of their side, most political pundits would agree that we're going to see some divide in Washington D.C after the election. Typically, this is good for markets. Healthcare, industrials, energy, financials, and technology sectors tend to fare well when we have a divide in Washington D.C. However we're still dealing with really heavy inflation and a Federal Reserve that is showing no signs of backing down on their hawkish tone toward raising rates as we head into 2023. There is no doubt that interest rates and the impact of inflation have plagued the markets for this calendar year.
However, as we head into 2023, we expect that impact to shift more toward corporate bottom lines. We expect to see worse-than-expected earnings, even though we've had a lot of solid ones this year. Unfortunately, with that, we do expect to have more pain to come. We undoubtedly will see some rallies here and there based on good earnings as we head into the end of the year or due to the results of the election. Nonetheless, we do not think we are done with this downward-trending market just yet.
If you have any questions from us on how we’re handling that at Wealth E&P, would like a second opinion on your investments, want a risk profile, or would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Otherwise, stay tuned for our next Market Minute! We appreciate you and hope you have a great rest of the week!
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