Market Movers: Chaos Reigns
2022 is well underway and the markets are looking as choppy as ever ahead of a very important earnings season.
We’ve got something a little bit different today though, as this week’s winners and losers just aren’t adding up…
Here were the biggest movers in the MyWallSt shortlist this week:
Moving Up ⬆️
Evolent Health (EVH) +13.5%
iRobot (IRBT) +5.0%
MercadoLibre (MELI) +4.2%
Bumble (BMBL) +3.6%
StoneCo (STNE) +3.5%
Moving Down ⬇️
2U (TWOU) -12.9%
DraftKings (DKNG) -11.0%
Stitch Fix (SFIX) -10.9%
Etsy (ETSY) -9.9%
What investors need to know
While this might sound like the opening to those yellow credits floating through space at the start of a ‘Star Wars’ film, I’m actually talking about the stock market — summed up in the image below.
The problem with this week’s winners and losers is that we don’t actually have much company-specific information to go on. The usual external factors such as inflation fears, the Fed, Omicron, and all the rest, just continue to wreak havoc.
So, if there’s no company-specific news to account for their movements, what do we do? We listen to someone a lot smarter than us, and that person is our old friend Morgan Housel. In his most recent post, ‘Does Not Compute’, Housel starts by saying:
“A lot of things don’t make any sense. The numbers don’t add up, the explanations are full of holes. And yet they keep happening – people making crazy decisions, reacting in bizarre ways. Over and over.”
If you take any lesson away from another dreary-ish week on Wall Street, let it be from this article, which you can read here.