Ações with the worst performance in 2022 now lead the wins in 2023

The years ended low in the second fair (30), after a solid recovery last week. Investors may be nervous before the big meeting of the Federal Reserve this week, a list of profits from the main technology companies with the quarterly balance sheets and the report of the United States jobs to be released on the sixth fair (3).

The Dow fell more than 260 points, or 0.8%, while the S&P 500 and the Nasdaq fell 1.3% and 2%. Still, it was still a solid start to the year for the market – and many of last year’s losers will lead the way on Wall Street now in January.

The communications sector, with its many heavily targeted media and technology companies, is the best-performing market group as of now in 2023: up nearly 10%, according to data from S&P Global Market Intelligence. It was the sector with the best performance in 2022, falling 40%.

The owner gives CNNWarner Bros. Discovery, which fell nearly 60% last year, is up more than 50% as of 2023 and is the best performer on the S&P 500.

Several other media companies, old and new, also resurfaced this month. Paramount, owner of CBS, rose 35%. A Disney increased about 25%.

Netflix earned more than 20%. The shares of the Meta Platforms, owners of Facebook and Instagram, will also raise more than 20%.

The years of discretionary consumption, which include many varejistas and assemblers, have also had an impressive recovery since last year. The sector has the second worst performance in 2022, with a loss of about 38%.

Just olhar for Tesla. The giant two electric vehicles of Elon Musk rose more than 35%. He also has a miserable 2022, losing almost two thirds of his value not last year.

Investors appear to be buying hopes that the Fed will continue to reduce the size of its pledge hikes after several historically large hikes last year and possibly even a pause near the end of this year.

Increasingly, the feeling is that the economy could end up heading for what is called a soft start: a slowdown, but not a total recession.

These hopes will drive other years of consumption. Amazon is up about 20% this year. The owners of cruise lines Carnival, Royal Caribbean and Norwegian are among the best performers in the S&P 500. As are the years of the casino companies Caesars, Wynn, Las Vegas Sands and MGM.

Still, some investors are concerned that this year’s market recovery will be scarily reminiscent of previous market bulges.

It is because there are only quality companies that are winning. The resurgence is also clear to us stocks of ações memes. GameStop raised almost 15%. The AMC movie theater rose nearly 25%.

Cryptocurrency brokerage Coinbase shot nearly 60%, despite the collapse of rival FTX and Coinbase’s own announcement of mass demissions. Coinbase was boosted by a recovery in bitcoin prices.

Afterwards, there are companies like Bed Bath & Beyond and Carvana, both of which have posted solid earnings this year, but there are rumors of possible bankruptcy claims. Even as these companies avoid Chapter 11, it is clear that they are in financial difficulties.

“We have seen speculation come back to life,” said Steve Sosnick, chief strategist at Interactive Brokers, in a recent report. Sosnick, without measuring words, called the recovery of these types of “voo para a porcaria” companies.

Others fear that if the stock market continues to be so choppy, it will put pressure on the Fed to continue raising rates much more aggressively than investors expect.

“The stock collapse in January will not last and the more exuberant the market is, the more likely the Fed will be more aggressive with tax hikes,” says David Trainer, CEO of New Constructs, an investment research firm, in a statement. report

“Most two investors don’t realize that the Fed also needs to fight inflation in the stock market”, added Trainer. “This means that investors need to buy shares with good fundamentals and real cash flows and sell the shares without profit and based on narratives that have dominated the manchetes in recent years.”