After a dizzying third quarter, U.S. investors brace for more wild market volatility

Outside the U.S., a surge in the U.S. dollar spurred a slump in global currencies, pushing Japan to support the yen for the first time in a year. Meanwhile, UK government bond prices tumbled, forcing the Bank of England to temporarily buy long-term gilts. Looking ahead to the next three months with trepidation, many investors are betting that the sell-off in U.S. stocks will continue until there are signs the Fed is beating inflation. However, the final quarter of the year tends to be a favorable period for U.S. stocks, fueling hopes that the market may have experienced its worst sell-off. Graphics: Asset Performance , YTD – https://inew.news/wp-content/uploads/2022/09/localimages/chart.png63376fe754f5e.png

via DIP In the past, the strategy of buying on dips brought great returns to investors, but failed badly 2002 : Standard & Poor’s 35 has risen 6% or more four times this year and has made new lows each time. The index rose nearly in the third quarter % hit a two-year low in September after investors reset expectations for more aggressive Fed tightening before the reversal. Graphics: Passed Down – https://inew.news/wp-content/uploads/2022/09/localimages/Pasted-25picture-251949.png

Look down? Several major Wall Street banks expect the benchmark to end the year below current levels – Bank of America (NYSE: 2022 BAC