Financial Stories That Dominated 2022
Daily news effects the stock market in the short term. Macro events effect the stock market in the long term.
1. Inflation
It is not transitory. All the world central banks got the policy wrong during Covid.
2. Looming Recession
The true recession will happen when businesses start to lay off employees.
3. Russia - Ukraine War
No more Russian oil for Europe of the United States. Instead that oil is going to India, China and North Korea.
4. FTX - SBF meltdown
Crypto as a whole has had a bad year.
5. China Covid
Historic protests. Covid is still raging throughout the country.
6. Stock market decline
The overall market continues to decline into 2023.
7. Southwest Airlines Meltdown
Who would have thought that Southwest Airlines would be company to meltdown and right after they reinstated the dividend.
Another example of why an investor should never invest into the airline business.
8. The Queen's Death - King Charles
Will Charles change the monetary structure of The Crown or The Firm. Whatever they call it.
9. Elon Takes Over Twitter
People really hate Elon now.
But time will tell if he can actually make Twitter a lot more profitable.
10. 8 Billion
The global population crossed this market.
More people means more consumers.
11. Goodbye Abortion
I wonder how this change in U.S. policy will affect healthcare spending.
12. Iran's New Revolution
I find it ironic that Communist countries always refer to their government as a revolution. But in Iran people are actually protesting against the existing 'revolution'. Believe it or not Iran does have a stock market and a lot of oil. If their government implodes, unlikely, it would have an affect.
13. Nobody wants Facebook Meta
I still believe in the power of the Zuck. But there have been a lot of things working against Facebook these last few years. Nobody seems to want to use the Metaverse.
14. Slit U.S. government
This is probably the most impactful story. The Republicans took control of the House but not the Senate. Which means that the parties will have to compromise to get anything done in Washington, which generally does not happen. The stock market usually does better under a split government, but the looking recession and FED rate hikes will continue to put downward pressure on stock.
15. The rise of U.S. Treasury Bonds, Bills, T-Notes
Bonds are back in favor now that the FED was forced to increase the interest rate.
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