October 12, 2022 | Investment Review

Investment Review - October 2022

  1. The major US stock indices declined in value in September. The Dow Jones Industrial Average was down 8.84%, the S&P 500 was down 9.34%, and the Nasdaq Composite retreated by 10.50%.

  2. The US Dollar Index continued to ascend and was up by 3.15% in September. The Index measures the value of the US dollar versus six major foreign currencies. A stronger dollar decreases the cost of imports, increases the price of exports to foreign purchasers and decreases the value of overseas revenues and profits of international US corporations.

  3. For 2022, the consensus among S&P 500 analysts is expected growth of earnings by 7.5%, revenues by 11.3% and cash flow by 11.2%. Analyst consensus expectations for 2023 call for continued S&P 500 growth as follows: earnings 8.1%, revenues 4.1% and cash flow 9.3%. Current elevated inflation reduces the value of future growth because the dollar in the future is worth less.

Key Investment Statisticskey investment statistics october 2022

Sources: FactSet, Institute for Supply Management (ISM), The Conference Board, US Bureau of Labor Statistics

Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.

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