Where is the US stock market headed in 2023?‎

The world’s top money managers expect global stocks to recover in 2023, suggesting that stock market gains will head towards the second half of the year, while US technology stocks will rise again in 2023.

Positive view:

Amid recent optimism that inflation has peaked — and that the Federal Reserve may soon begin to change its tone — 71% of respondents in a Bloomberg News poll expect stocks to rise, versus 19% expecting a decline.

The informal survey of 134 fund managers includes the views of major investors including Goldman Sachs, French asset manager Amondi, and US company BlackRock, and was conducted from November 29 to December 7. To give an insight into the big issues and events that he expects to face in 2023, after inflation, the war in Ukraine, and hawkish central banks hit stock returns this year.

Target shares:

In context, retailers believe stocks will drop in 2023 – and plan to focus on tech stocks According to a survey by London-based Finimize, most individual investors plan to invest the same amount or more in 2023, despite the cost of living crisis. According to the survey, only 1% of retailers said they plan to sell their investments in the new year, while 65% will continue to invest and 29% plan to add to their investment portfolios. For his part, Max Rovaga, CEO of Finimize, said in a press release on Wednesday: “This data is evidence that even in the current market environment, the majority simply view fluctuations as part of the economic cycle thanks to access to information and experience. increasing investment.”

The survey of more than 2,000 retail investors across Europe, Asia and the United States concluded that more than 80% of retail investors believe the worst in the stock market will be over within six months. The majority of traders (72%) plan to support individual stocks next year, and 64% prefer the names of big technology companies such as Apple, Meta, Microsoft and Google.

Digital currencies:

Meanwhile, 38% of retail investors plan to invest in cryptocurrencies, even amid the fallout from the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange.

About 56% of traders believe that Bitcoin will trade higher, compared to 44% who believe it will trade lower. Most retail investors (58%) plan to increase their investment in cryptocurrencies if they are more regulated.

Biggest concerns:

Without a doubt, the biggest financial concern among retailers is the cost of living crisis. Consumer budgets are being squeezed by high inflation, and that has been a blow to stocks as central banks raise interest rates to tame higher prices.

More than half (55%) of retail investors say their biggest financial concern right now is the rising cost of living. Rising interest rates was close to that, with 28% of traders taking it as their biggest concern. The role of retail investors in influencing the market made headlines last year after a community of enthusiastic newbies on Reddit and other social platforms led to a surge in shares of US game retailer GameStop. Despite this, so-called “meme stocks” are not of interest to most retail investors, according to the survey, with 84% having never invested in memes.

The meme stock is known as a stock that has gained popularity among retail investors through social media. The popularity of meme stocks is generally based on internet memes being shared among traders, on platforms such as Reddit’s r/wallstreetbets. Investors in such stocks are often young and inexperienced investors

List risks:

In the same direction, a team at Deutsche Bank or the Deutsche Bank, led by veteran strategist Jim Reed, proceeded to identify the greatest risks to stocks in the coming year in a new survey, conducted from December 7 to 9, and included a response from 856 financial professionals, where He concluded that the biggest risk to market stability, according to a Deutsche Bank survey, is that the recession is worse than expected, and it occupies the forefront as the biggest market risk in the coming year.

Inflationary stagnation:

Slow economic growth and high unemployment combined with high inflation – known as stagflation – are major market risks in 2023 that keep investors on edge.