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By Nicholas
Jasinski | Tuesday, March 22 Buy
the Dip. Stock
indexes jumped at today's open and continued to tick higher through the
day. The Dow Jones Industrial Average
gained 0.7%, the S&P 500 added 1.1%, and the
Nasdaq Composite jumped almost 2% on a good day for
growth-oriented shares. That was despite a continued rise in bond
yields after Federal Reserve Chairman Jerome
Powell's hawkish
remarks yesterday. The 10-year U.S.
Treasury yield rose 0.06 percentage point, to 2.38%—its
highest since May 2019. Today continued a volatile stretch for the
market. The Nasdaq's move today was its 39th daily change of at least 1% in
2022. That’s the most in any quarter since the first quarter of 2009. The tech-heavy index is still down almost
10% since the start of the year, but it has rebounded more than 12% from its
March 14 low. The S&P 500 is down 5% this year, but up 8% from its 2022
low. Buying the dip in early March appears to have worked so far. Zoom out even further and the benefit of
bargain hunting after sudden declines in the market is even more clear.
Tomorrow will mark the two-year anniversary of the Covid-19 selloff bottom in
March 2020. Since then, the Nasdaq is up 106% and the S&P 500 has
added 102%. Only nine components of the index are in the
red over that period, according to Dow Jones Market Data. Consumer
staples—the worst-performing sector in the S&P 500—have soared 56%.
Energy shares have more than tripled since then, up 219%. Both the short-term bounce and the
longer-term ones recalls Warren Buffett's counsel to
investors: "Be fearful when others are greedy, and greedy when others
are fearful." |
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DJIA: +0.74% to 34,807.46 The Hot Stock: Tesla +7.9% Best Sector: Consumer
Discretionary +2.5%
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