The stock market suffered large losses in 2022. Uncertainty surrounds 2023.
Due to Fed rate hikes, the Russia-Ukraine war, and recession fears, 2023 is expect to be somewhat a tumultuous trading year.
Uncertainty offers opportunity. There's always a bull market on Wall Street. As the market struggles, smart investors can outperform.
Most 2023 stock market estimates display a mix of optimism and concerns and forecast the S&P 500 at 3900 by 2023.
With so much uncertainty, a cautious stance is wise. Long-term investing trends are changing. Investors must monitor sector changes and choose wisely.
As tech stocks seek new footing, some analysts anticipate value stocks outperforming growth companies. Other experts foresee strong infrastructure stocks and M&A prospects in 2023.
2023: Market recovery?
All major indexes fell the most since the 2008 financial crisis in 2022.
The Dow Jones Industrial Average fell 8.8% due to its underexposure to technology stocks. The Nasdaq composite fell over 30%, and the S&P 500 fell 20%.
Growth investors had a tough year with the Innovator IBD 50 ETF down 50%.
Heavy pullback factors
Several factors caused the steep declines. Inflation and the Russian invasion of Ukraine hit stocks hard. The Fed changed its mind about inflation being temporary and began aggressively hiking rates to reduce prices. These efforts are bearing fruit, but only after battering markets.
Retail and professional investors have been hit hard as 2022 goes on record for being the worst performing year for major asset classes in 15 years.
It's one of the toughest markets, especially for buy-and-holders with nowhere to hide, not even bonds.
So what can we expect in 2023?
Watch this video to see our analysis of the indices, commodities, and some of the large caps.
Good trading! And Happy New Year! 🎉
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