Here are the 10 best and 10 worst performing stocks in the S&P 100 this year. However, as you can see, some of the worst performers are just starting to post a very strong recovery in recent weeks. What’s more, this recovery has legs to keep running for a while, considering inflation numbers are showing signs of slowing—which in turn will slow the fed’s interest rate hike trajectory (which is the main reason stocks have been selling off so hard this year).
Said differently, “buy low, sell high.” Of course no one can ever exactly time the bottom and the top, and in the very long term—the best stocks will eventually rise to the top. However, names like Nvidia (which we recently bought) and Meta Platforms (which is a money-printing machine—despite the weirdness of CEO Mark Zuckerberg) are attractive—and they both still have room to run a lot higher from here.
On the other hand, a few of the Utility and Healthcare sector stocks that have performed so well this year, may be due for some significant relative weakness going forward (considering people piled into them in the first half of this year as a “safety play” which may now be unwinding dramatically).
Overall, the economy will recover, especially as inflation slows and the fed lightens up a bit. And most of the best performers will be the quality stocks that sold off hard this year, but still have solid long-term business growth ahead.