New Year’s Stock Market Prediction

You may have read a number of articles with stock market predictions about the new year, maybe even predictions from the big firms like Morgan Stanley or Citibank. Forecasts are always popular because people are looking for “certainty” in their investing. Here’s my prediction—most everyone will be wrong because, most likely, 2023 isn’t going to follow anyone’s script. Just research the 2022 predictions for proof.

This is why. Even if you knew what the economic data was going to be, it’s still virtually impossible to know how the market is going to receive it. An example was the year’s low point of the market on Oct 13, 2022. The CPI report showed inflation high and was “worse than expected”*^ and the market dropped, at first. Then it recovered and rocketed up 2.6% on the day*. Even if the data was known ahead of time, most people would have bet wrong.

So, the question is, what to do now? How about investing in a way where you don’t care about stock market predictions. Where you have money earning high fixed interest and money that will increase if the stock indexes go up that is also protected from losses^. The investing world has changed. Maybe it’s time to look at some new ideas. To learn more, please visit our website and/or call for a 15 minute discussion.