A lethargic week for stocks, as trading volume remained light. With few buyers showing any interest, sellers again suffered significant losses on their trades. Almost all stocks were down on the week, and many that had rallied in the past 8 weeks returned to pre-rally prices.
The absence of buying interest is due to investor concerns over stubborn inflation, rates remaining high as a result, and the attendant pressure on consumer budgets, now made greater by rising oil prices.
Add in China’s ban on its citizens using Apple products, which concern spread to semiconductors in general, which spread to other companies relying on sales to China, and investors just soured on buying more stocks.
When investors can get 4% returns in safe money markets/CDs or a bit more in safe bonds, the appetite for stocks (with their higher risks) remains muted.
Market conditions are looking like they did in the 2Q with stocks rather stagnant. Our shorts were generally profitable, but most longs slumped, reducing gains or increasing losses. One of many forgettable weeks for us – and investors in general – this year.
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