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Random Gleanings: Mid-Term Volatility, Earnings Matter (again), Sector Rotation, & Olympic Atrocity Thumbnail

Random Gleanings: Mid-Term Volatility, Earnings Matter (again), Sector Rotation, & Olympic Atrocity

Random Gleanings

2022 markets have started off choppy, Jesse introduces some historical perspective on how volatility has picked up early in mid-term election years.  Next, Chris speaks to the varied results after earnings calls from Google, Amazon, and Facebook... one of these is not like the others!  The guys then talk through the difference in economic sector performance year to date, and Chris closes with a rant on the Olympic scenery.  Enjoy!

Hopefully it is obvious that nothing in this video should be considered as personalized financial advice or a solicitation to buy or sell any securities.  

See our disclosures here: https://proplanwealth.com/disclosures

As you know, 2022 is a Mid-Term Election year. According to this chart from Capital Group history would suggest the volatility we've experienced already this year isn't in and of itself unusual. (Past performance does not guarantee future results. You already know that, but... got to say it anyway.)

Google reported great earnings (and a 20-for-1 split!) which saw their share price POP to start February, but then a lack of momentum possibly supporting the idea of a change of leadership in the markets away from technology.

Facebook missed their earnings and gave a less than stellar outlook for the coming 12 months and... well... you can see!  It's like a banana peel in a cartoon, slip and fall.

Chris highlights that while Amazon did enough to satisfy folks with their mediocre earnings call (reflected at the right end of the chart), the bigger point is that one of the stock price has gone nowhere in the last 12 months.

One of these sectors (Energy: see purple line) is not like the others.  Financials (orange line?  tangerine?) is also positive, supporting the regime change in a rising interest rate environment, while Tech, Consumer Discretionary, Communication Services, & Real Estate have gotten beaten up.

The scenery for the Olympic Freestyle Skiing event is a little bit underwhelming.  That statement is sarcasm... it's straight up atrocious!