Buy sugar, it will sweeten your life – the good advice could be there for two reasons now. In addition to the obvious report, we can now also mean that buying products at official prices is a saving compared to the market price of the products, so buying them is also a good investment. We are also talking about price-cap products (such as sugar, cooking oil, chicken tail and petrol) because the year 2021 and the year 2022 have not been very lucky for investors. The last one year has not been about the soaring of the stock markets, but primarily about the commutation of investors.
Major stock market indices fell almost month-on-month, except for a better period, while stocks of only a few major companies kept their hopes alive. So for now, there really are only a few Mohicans left whose exchange rates are near their peak at all times. Interest rate hikes are bad for stock prices because bonds are becoming more attractive than before, so money is flowing from the stock markets to the bond markets, putting stocks under selling pressure. In such cases, stock market liquidity decreases and demand for equities is more limited as supply increases, resulting in price declines.
Stock market indices have also been battered
While the U.S. S&P 500 indexed 4287 points Thursday its evening closing is just over 10 percent, exactly 11-12 percent below its all-time high of 4808 points in early 2022, while other stock indexes no longer paint such a not-so-ugly picture.
The technology-overweight U.S. Nasdaq Composite Index, for example, peaked in November 2021, when it stood at 16,212 points. Thursday night closed at 12,871 points, a nearly 21 percent drop from the peak in 5.5 months. The fall in this index really started from the beginning of 2022, although the lives of investors were still low.
The German DAX index closed at 13979 points on Thursday, so it was already about 14 percent away from its 16290-point peak in early 2022.
The French CAC-40 index reached an all-time high of 7,384 points in early 2022, with Thursday’s closing being nearly 12 per cent below it at 6,508 points.
The English FTSE-100 index almost reached 7,700 points in February 2022, and was only 2-3 per cent of it on Thursday, so the March break was almost completely over.
The Italian MIB index closed at 24055 points on Thursday, almost 15 percent lower than its peak of 28212 points in early 2022.
If we look at the stocks one by one, we can see that there have been much bigger falls than this. Nor was a 50-80 percent drop in a few months either. You may also want to consider the impossibility of finding the bottom of the exchange rates. It’s even hard to decide when to buy in these circumstances. Just think about it! If a stock falls 90 percent of its peak, and if they decide to buy it in the event of a fall of 80 percent, they would receive 20 percent of the peak price, which would halve the investor’s money if a fall in the peak price to 10 percent. Therefore, it is important that if someone wants to buy a certain share or ETF for HUF X, for example, do not do so at the same time for HUF X, but for the sake of security, divide the amount into several parts and then buy with a part of X.
Chinese companies are in big trouble
Chinese companies have been on the crosshairs of regulators for almost a year now, so not many companies have swum through a period of huge stock market crashes. For example, Alibaba, known primarily for its retail business, is 71-72 percent below its all-time high, after closing the day at 2.93 percent at $ 90.91.
One of the world’s largest game developers, Tencent Holdings, closed at $ 43.26 after a 1.48 percent rise that day on Thursday. From its all-time high, the fall is already 56 to 57 percent.
U.S. technology companies didn’t do much better either
Meta Platforms, which includes Facebook, Messenger, Instagram and WhatsApp, rose 17.59 percent on Thursday as a result of a quarterly flash report released a day earlier. Even the resulting exchange rate of $ 205.73 is enough to pay 46-47 percent less per share than its current maximum.
PayPal rose 11.48 percent on Thursday to close at $ 92.09. This is still minus 70 to 71 percent of its all-time high in July 2021.
The world’s most famous streaming site, Netflix, rose 5.82 percent on Thursday to close at $ 199.52. It is 71 to 72 percent lower than its current maximum.
Despite the lack of chips, chip makers have run out of soufflé
Nvidia’s share price rose 7.42 percent on Thursday, closing the day at $ 197.82. It is still 40-41 percent lower than its current maximum.
AMD rose 5.57 percent on Thursday to $ 89.64 at the end of the day. Compared to its peak at the end of November 2021, it has almost slowed down, with its performance since then at minus 44-45 percent.
Intel has embarked on major developments and investments (including the construction of factories) that will consume a lot of money. The exchange rate rose 3.58 percent to $ 46.84 on Thursday, but the fall is still at 31-32 percent from its peak.
Cola also protected the stomach from stomach ailments in the stock market
We could also say to the warring parties: do not fight, crawl!
PepsiCo, which produces all kinds of chips, snacks and sweets in addition to cola, is at an all-time high: up 1.52 per cent on the penultimate trading day of the week, standing at $ 177.5 on Thursday night.
Coca-Cola is also nearing its all-time high, rising 0.96 percent on Thursday to $ 66.19. A few days ago, its exchange rate was even higher: it was about 1.5 percent above Thursday’s closing.
U.S. military stocks are the winners of the war
Lockheed Martin, General Dynamics and Northrop Grumman, who are interested in the military industry, are very close to their peaks, only 5-7 percent away from them, so U.S. military stocks have also proved to be a good choice in recent months.
The price of oil and gas went down because of the war
U.S. oil companies performed well, however from their peaks years ago they are still about 20 to 25 percent away. The price of ExxonMobil and Chevron has still risen a lot in the last year due to rising oil and gas prices.
We’ve also been writing almost two months ago about how to invest in the current environment, it might be worth reading this again!
(Cover image: Pepsi and Coca-Cola at a New York Supermarket on December 12, 2005. Photo: Daniel Barry / Bloomberg / Getty Images)