October Market Outlook
Last week
September is usually a bad month for investors, with the S&P falling 1% on average.
This September was worse than usual with the S&P falling by more than 9%, its worst performance since 2002.
The downward trend carried on through the last week of the month with the S&P losing 2.64%.
Comparatively, the PIF Growth Portfolio had a much more resilient performance in the past week up 0.84%.
Earnings
On Thursday, Micron Technology (MU) reported earnings of $1.45 per share beating the consensus estimate of $1.42 and concluding the year with record revenue of $30.8 billion.
That was the good news.
The bad news is that the company also forecasted revenue of $4 to $4.5 billion for the first quarter of 2023 which is well below analyst expectations of over $6 billion.
Looking Ahead
Moving into October inflation continues to be top of mind for investors.
The September CPI report (a measure of inflation) is scheduled for release on October 13, while the Fed’s preferred measure of inflation—the personal consumption expenditures (PCE) price index—will be released on October 28.
Earnings season, when publicly traded companies report quarterly results, kicks off mid-month.
A slowing economy and falling inflation may put investors at ease since it suggests no more upward surprises in the level of interest rates.
On the other hand, if inflation and the economy continue to run hot, we may have another leg down to go.
October has a reputation for above-average volatility and considering how the year has gone, this is par for the course.
PIF maintains its posture as a net buyer of assets during this time.
If you’d like to follow what opportunities we’re investing in, make sure to take advantage of the offer we have running until the 7th of October wherein every annual membership to PIF comes with 2 free months of membership, and our course “ The Practical Guide to Screening Stocks for Sharia-Compliance” absolutely FREE. Be sure to become a PIF member today!