Philip Van Dorn
Plus, a brief look at earnings analysis for big tech companies, how to invest in bonds, and estate planning services built into the iPhone
It’s been a brutal year for Big Tech, and as the chart below shows, Meta Platform (META) is leading the way. Shares of Facebook Holdings plunged 26% on Oct. 10. 27, bringing the 2022 decline to 71%.
Many of the largest tech companies have underperformed the S&P 500 in this year’s broad bear market.
Believe it or not, the broader market is still trading at high levels based on some historical valuation metrics.
So, how do you know when such a big drop in tech stocks has gone too far? In other words, when should you buy? Mark Herbert analyzes the herding behavior of Wall Street analysts as they downgrade Meta estimates and ratings to see when the stock will turn.
Tech gains and a season of disappointment
The chart above shows the 2022 stock performance of FAANG group stocks with dividends reinvested, including Facebook’s rebranded holding company Meta Platforms, Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google holding company Alphabet (GOOGL) , as well as Microsoft (MSFT) and Tesla (TSLA). All but Apple have underperformed the S&P 500 this year, which is down 19%.
Big tech stocks saw huge swings this week as quarterly financial results were released. Here is a selection of reports and analysis:
Two Timely Bond Market Guides
Interest rates have risen this year and bond prices have fallen as the Federal Reserve moves to combat inflation. Yields have become so attractive that if income is or will soon be one of your investment goals, it’s time to consider moving some of your money into bonds.
Here are two in-depth guides for different areas of the bond market:
Did you miss the I-bonds deadline?possible
The US Treasury’s I-bonds rate is 9.62%, but the deal expires in October. On the 28th, this sparked a flurry of interest that could flood the TreasuryDirect.gov site.
But you might get a better deal next week.
Related: Limits on 401(k) contributions to grow by nearly 10% by 2023, but maximizing retirement investments isn’t always a good idea
iPhone’s built-in estate planning features
The iPhone has a fascinating feature that allows users to specify old contacts. Android phones have similar capabilities. They allow survivors to access the phone in the event of the user’s death. As Beth Pinsker explains, this can be a very useful estate planning tool.
An activist drives change at LSD
Ciara Linnane and Steve Gelsi interview an activist investor driving change at MindMed, and the company’s CEO hits back. The New York-based biotech company develops psychedelic-inspired treatments for addiction and mental illness.
Year-end tax planning as stock market losses mount
Here’s how this year’s bad market can help you achieve tax time, even if you’re not wealthy.
Keep reading: “Help is on the way”: Need to talk to someone from the IRS about your taxes?This is to make it easier, says IRS chief
Changes in Credit Scores in the Real Estate Market
The U.S. mortgage market was effectively nationalized, with Fannie Mae and Freddie Mac directly under the state’s jurisdiction and purchasing nearly all newly issued mortgages.
Now that the federal government has directed Fannie Mae and Freddie Mac to use alternative credit scores, it’s likely to affect people you know who want to buy a home.
On October 27, Freddie Mac said the average rate on a 30-year fixed mortgage in the United States was 7.08%, up from 3.14% a year earlier.
But with all the talk of a possible recession, some mortgage bankers expect lending rates to fall in 2023. Here’s how much interest rates could fall.
It’s Elon Musk’s Real Twitter Time
Elon Musk, the CEO of Tesla and SpaceX, also now runs Twitter — first by firing three of the social media company’s top executives, for which he took responsibility for $200 million.
More on Musk and Twitter:
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– Philip Van Dorn
(End) Dow Jones Newswires
10-29-22 0831 ET
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