The year 2022 remains in the rear-view mirror. There was no shortage of buzz in the market last year: rising interest rates, an ongoing inflation shock, and, as a result, falling stock markets and a strengthening dollar.
KUALA LUMPUR, MALAYSIA – Media OutReach – 6 February 2023 – The year 2022 remains in the rear-view mirror. There was no shortage of buzz in the market last year: rising interest rates, an ongoing inflation shock, and, as a result, falling stock markets and a strengthening dollar. Just imagine, at the end of the year the S&P500 was headed down 18%.
If we speak about the stock market, we should not be critical, as the decrease in the value of assets was mixed and there are even positive moments:
We have taken all these trends into review and provided you with the most probable scenario of the situation. The following research aims to let our clients know the 2023 trends in the assets they trade (currency pairs and stocks).
We’ve highlighted two sets of information. In the first part we look at trends in the macroeconomics of countries and forecast the value of the U.S. dollar, and in the second part we share a vision about key industries that we think will perform in 2023.
As we said, this outlook will be of primary interest to our clients, because they can use all the asset types and market situations discussed to execute trades on their accounts.
United States & US Dollar.
We expect the U.S. recession to continue in the first half of 2023, then recover and rebound, gaining strength by the end of 2023:
Global economies
US economic resilience is contrasted with a European recession and a boomy reopening in China. The energy supply shock resulting from the Russia-Ukraine war will contribute to weaker growth in the Eurozone. The situation in Asia-Pacific (APAC) mirrors that of China’s reopening and their rejection of zero tolerance Covid in China
Commodity still looks attractive
[1]
In the stock market, we identify two sectors that, for different reasons, have growth potential and could be attractive in 2023, but at the same time do not rule out separate market stories with other stocks:
Big Techs have big trends
After the technology crash of 2022, some companies are still struggling to recover, and investors may think that the best days of technology companies have passed.
Ambitious plans can definitely be pushed aside. For the technology sector, 2023 is a year of uncertainty and skills shortages. This puts a strain on all activities in 2023.
Companies are focused on optimising business processes and reducing budgets, which, in our opinion, will have a negative impact on growth stocks.
However, we see the negative market sentiment as a great opportunity for the “Big Techs” (Apple, Microsoft, Nvidia, Visa, etc.), as their businesses have become well-established.
We believe that rising interest rates and macroeconomic and geopolitical concerns have simply distracted investors from long-term trends that create growth opportunities for companies in Semiconductors, Cloud technologies and 5G.
(Our clients can trade 22 shares in this sector)
Healthcaregood fundamentals creating upside opportunity
In the first half of 2022, we saw a massive selloff across the entire spectrum of the market, and the Healthcare sector is no exception. But with so much negative sentiment already factored into stock prices, the fundamentals become quite interesting and speak to the undervaluation of this category of stocks. If confirmed by investors’ willingness to buy, the healthcare sector could rise in 2023.
Another tailwind is worth highlighting: The US Inflation Reduction Act, which was signed into law in August 2022, included a 3-year extension of enhanced subsidies for consumers who purchase health coverage on the Affordable Care Act marketplaces. This is a benefit to health insurers offering Medicare and/or Medicaid plans.
Regardless of where the U.S. markets go next, the Healthcare sector may offer a combination of protective and growth characteristics that could be attractive in a variety of scenarios.
(Our clients can trade 22 shares in this sector).
The Bottom Line
Due to the fact that business cycles outpace economic cycles, we believe that cyclical stocks have growth potential first and foremost.
We believe that the themes described in this review are the key ones that will drive the world economy. We deliberately divided the forecasts into America and non-America, understanding that the U.S. dollar is the main measure of the state of the world economy. And within 2023, the U.S. dollar tends to decline, which is a leading positive signal for the global economy and all categories of public equities.
Hashtag: #OctaFX
The issuer is solely responsible for the content of this announcement.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities and small to medium enterprises.
On a side note, OctaFX has also won more than 50 awards since its foundation, including the 2021 Best ECN Broker award from World Finance and the 2022 Best Global Broker Asia award from International Business Magazine.
Vietnam is increasingly popular among Indian tourists, consistently topping reports and surveys as a favoured…
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 24 December 2024 - For Octa, a…
ACCRA, GHANA - Media OutReach Newswire - 24 December 2024 - 1win, in partnership with…
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 24 December 2024 - Shopee Malaysia recently…
MOSCOW, RUSSIA - Media OutReach Newswire - 24 December 2024 - Wildberries, a leading e-commerce…
HO CHI MINH CITY, VIETNAM - Media OutReach Newswire - 24 December 2024 - JustMarkets…