Every Friday I recap “news you can use” from the week: a handful of quotes from major (and often expensive) news sources, so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
China to Open Borders as Covid-19 Cases Rise (Dec. 26, Wall Street Journal):
China has maintained among the world’s most restrictive coronavirus lockdown measures, slowing its economy significantly and sparking anger. Following waves of protests this fall, authorities abruptly abandoned the country’s stringent zero-Covid-19 strategy early this month.
Gold prices settle higher as U.S. dollar weakens after China’s decision to ease COVID curbs (Dec. 27, MarketWatch):
Gold prices jumped to their highest level in six months on Tuesday, as hopes surrounding decisions by the yellow metal’s top consumer China to further dismantles COVID-19 restrictions and reopens its borders weighed on the dollar. …
“Gold remains poised just under multimonth highs, and if the contrarian idea of a weaker dollar in 2023 comes to fruition (and there’s reason to believe it will) then gold will have a positive catalyst behind it as we start the new year,” said analysts at the Sevens Report.
Inflation-Wary Shoppers Pull Back as Goods Pile Up in Stores (Dec. 27, Bloomberg):
The National Retail Federation had predicted a sales increase of 6% to 8% this holiday season but has seen lower-income consumers pull back.
Inventory problems are adding to the stress. Retailers are still trying to offload piles of unsold goods after the pandemic delayed deliveries — with limited success. The buildup has even prompted sellers to tell suppliers to stop sending merchandise.
Why you should not buy a new car in 2023 (Dec. 27, MarketWatch):
“We see a challenging auto end-market globally into 2023, driven by high interest rates, energy prices and financing rates affecting affordability,” analysts Mizuho Americas, led by Vijay Rakesh, wrote on Dec. 19. …
All of this boils down to the need to wait to buy your next new or used car, if possible, because it may take another year for the car market to settle. It may cost much less to maintain or repair your new car for another couple of years.
‘Five Days That Killed the Year’: These Trading Sessions Accounted for 95% of the S&P 500’s Losses in 2022 (Dec. 28, Barron’s):
Just five trading sessions accounted for more than 95% of the S&P 500 index losses in 2022 as the U.S. stock market heads for its worst year since 2008. September 13 (-4.3%), May 18th (-4.0%), June 13 (-3.9%), April 29 (-3.6%), May 5 (-3.6%) …
After $18 Trillion Rout, Global Stocks Face More Hurdles in 2023 (Dec. 30, Bloomberg):
Bulls looking ahead at 2023 might take solace in the fact that two consecutive down years are rare for major equity markets — the S&P 500 index has fallen for two straight years on just four occasions since 1928. The scary thing though, is that when they do occur, drops in the second year tend to be deeper than in the first.
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I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.