Stocks have suffered a beating this year, but that may bode well for 2023

Good morning, readers. Phil Rosen reports from Los Angeles. If my math is right, this would be something like the 260th Opening Bell Newsletter of 2022. 

With so many things competing for our attention, I am grateful for the opportunity to write to each of you every day. It’s a privilege to greet you every morning in your inbox, and I look forward to continuing.

We are grateful for a wonderful year. 

The stock market is wrapping up an unforgettable year, but not like this newsletter or all you readers. Portfolios were bludgeoned by investors who lost their capital. 

We can take that as a hint of what’s to come.

Programming noteThere will not be a newsletter Monday, January 2, 2023. We’ll see you back on Tuesday.

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1. Here’s an amazing fact: 94% of the S&P 500’s losses for the year took place over five trading days. 

DataTrek Research has released a new report revealing that the index endured most of its 20% annual lossA few sessions were available. 

The declines were usually caused by spiking inflation concerns and big corporate earnings misses. reactions to Fed interest rate hikes. 

The largest drop was on September 13When the August inflation report came back hotter than expected, it was a sign that the S&P 500 was impacted. That pushed the S&P 500 to finish 4.3% lower.

Nicholas Colas, DataTrek cofounder, said that “a handful of days make the years” is a good framework to think about 2023.

Later, he added: “At some time next year, equity market should have some outsized days as investors conclude the Fed has stopped raising rates.”

It’s important to note, too,Investor sentiment is also sagging, despite slumping stocks worse than it was during the 2008 Financial Crisis. 

Fundstrat thinks that this is a good thing. stock market bottom is nearIf it hasn’t already,

“Currently, we are the most ‘entrenched. persistent level“The firm stated that the survey had shown bearish sentiment throughout its history.” Think about that. More negative than [the]2002 tech bubble and 2008 Great Financial Crisis.

I wouldn’t recommend investors to anyone.You are wrong to feel depressed. This year, inflation caused severe pain and recession fears are still top of mind. 

Fundstrat’s position is still a positive sign. A bottom would allow for a new bullish market to start.

“Investors are more focused on the shocksThese are the things that have been’realized’ in the past and less on what can be done to change them. “We believe that 2023 will be a turning point in our lives. We will focus more on the latter (how things could change) than the former (what is already real).

In other words, stocks could be set up to take advantage of a bearish sentiment. big rally in 2023. 

What are your stock market expectations for the new Year? 

Tweet me@philrosennSend an email to (prosen@insider.comTo let me know, please use (

In other news

2. The final trading day in 2022 saw the US stock futures drop early — the worst year in over a decade for stocks. Here are the latest market moves.

3. Earnings on deck: Time Out Group PLC, Tencent Music Entertainment Group, and more, all reporting.

4. This couple went through a difficult time. They were working in restaurant shifts and had “terrible credit”. Now they have a multimillion-dollar portfolio of real estate. Now, Natia Seegars and Jervais Seegars make $30,000 per month in revenue. They explained how anyone can start buying property in four steps.

 5. Sam Bankman-Fried seems to be doing well in house arrest. The ex-FTX chief will be staying at his parents’ California property worth $4 million, near Stanford University. The home has five bedrooms and a pool, and SBF reportedly goes on a daily jog with a private security detail.

6. Credit Suisse’s chief US equity strategy strategist believes stocks will perform “pretty good” over the next few months. This could be good news for markets as it will lead to falling inflation expectations and a potential increase in consumption. See Jonathan Golub’s full breakdown.

7. Alameda Research just sold $1.7 Million in crypto. Data showed that unloaded Ethereum-based currencies were not loaded by wallets associated to the hedge fund Bankman Fried. These coins were then exchanged for bitcoin. The bankrupt company still holds over $112 million in tokens. 

8. Court documents show that FTX misused customer money. Filings show that early deposits of cash users made were not separated from Alameda’s own funds. SBF used the cash as his personal ATM. Get the full details.

9. Michael Burry, a “Big Short” investor, raised the alarm about a market crash. He warned the S&P 500 could halve in value, the US economy could suffer a prolonged downturn, and Tesla would come under pressure. Here are his best calls from 2022.

10. Solana’s share price has fallen 96% compared to its all-time highs. Sam Bankman Fried was heavily involved in Solana’s recovery.But not only through positive public comments. Dig into the relationship between FTX and the crumbling token.

Phil Rosen in Los Angeles curates. Comment or tips? Tweet @philrosennEmail prosen@insider.com

Edited by Jason Ma (Los Angeles) and Hallam Bullock@hallam_bullock) in London.