12 NASDAQ Penny Stocks Under 10 Cents

12 NASDAQ Penny Stocks Under 10 Cents

Hamna Asim
8 min read
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In this article, we discuss 12 NASDAQ penny stocks under 10 cents. If you want to see more stocks in this selection, check out 5 NASDAQ Penny Stocks Under 10 Cents. 

According to Morgan Stanley, it is possible that stocks will see robust performance in the first half of this year, though the threat of a recession in the latter half cannot be disregarded. Investors should be on the lookout for value stock opportunities and those in the Asia ex-Japan region. Over the 12-month period following a midterm election year like 2022, the S&P 500 has historically seen an average increase of 33%. The trend has held true in every midterm election year thus far, suggesting a promising outlook for the current quarter. Additionally, economic indicators remain robust – such as GDP and employment rate – which means there will not be a collapse in first quarter earnings. The strong performance of financials, industrials, and materials sectors in recent months also suggests that a first quarter collapse in earnings may not occur, as prices of these cyclical stocks typically decrease before the economy weakens. 

Emerging markets are believed to be in the early stages of outperforming due to the declining trend of the US dollar since September 2022. This has led to non-US markets performing better, with Asia ex-Japan leading the charge since October 2022, followed by Europe and Japan. These markets have also outperformed the US. Based on the trend of outperforming emerging markets, Asia ex-Japan, particularly China, is considered to be an attractive equity area for 2023.

On February 7, Fed Chair Jerome Powell stated that the process of disinflation has begun and that he anticipates significant decreases in inflation this year. These comments align with what he said after a recent policy-setting meeting, which many in the market expected him to retract. Powell's comments at the Economic Club of Washington have boosted investor confidence in a possible easing of monetary tightening, even though he emphasized that returning inflation to the Fed's 2% target will take time and will not be a smooth process. Rick Meckler, partner at Cherry Lane Investments in New Jersey, told Reuters: 

"He seems to reiterate the fact that in his view inflation is cresting. That's been the biggest fear for participants in the market: that with all the rate increases, that in the Fed's view no real progress is being made against inflation. And he's saying 'no, it's having its effect.'" 

According to futures, the Federal Reserve's overnight lending rate is expected to reach its peak of 5.12% in the summer and then decrease to 4.785% by December, due to the anticipation of Fed rate cuts as the economy slows down. Phil Orlando, the chief equity strategist at Federated Hermes in New York, has expressed concerns about the stock market due to a slowing economy, rising corporate expenses, and declining profit margins. He noted: 

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