As the year 2022 comes to a close, a look back does not paint a pretty picture of the equities. The equity markets were very choppy in this calendar year; they had myriad headwinds that they had to navigate and that included a slew of interest rate hikes from the Fed, geopolitical tensions, inflation, recession fears, etc. That being said, the last quarter of this year also ended up seeing a divergence of performance between some pockets of stocks and the front-line broad market indexes.
Besides this, during this time of year, typically one would see a lack of volume participation due to the holiday season. Such phases of low liquidity in the markets often result in moves that usually do not occur during times of normal demand and supply. A typical example of this would mean a rise in the stock extending much higher and normal and any decline in the price getting abnormally extended as well. Such times offer a good opportunity to accumulate otherwise good stocks at very good entry levels.