The S&P/ASX 200 (ASX: XJO) delivered its first weekly gain since April while US stock markets continued their losing streak.
Here are my three key investor takeaways from the week.
Bear market
The headlines will be all about a bear market in the S&P 500 during the week after US markets suffered an eighth straight week of losses. But regardless of whether it is a 19% or 20% fall, it is clear that times are changing.
In such an environment it is easy to focus on what could get worse, yet with such a swift fall overseas, the question now becomes how much has been priced in and are recent events now looking at becoming positive catalysts.
That is, markets will likely now react against expected rate hikes, economic growth and other data, rather than absolute movements in rates.
20 is the new 10
The week reminded us that in a world where information and data are shared quicker than ever, 20% falls are the new 10.
Global retailing giants Target (NYSE: TGT) and Ross Stores (NASDAQ: ROST) both sold off by more than 20% after barely falling under expectations for sales growth but were taken as signs the economy is at risk of turning lower.
Defining defensive
This offers a unique insight into what many have traditionally defined as ‘defensive’ parts of the market like healthcare and grocery retailers.
2022 has taught us that technology stocks may actually be far more cyclical than many convinced themselves to be, with perhaps a similar case occurring in the healthcare and staples sectors.
