Investment in 2023:
What Does the Future Hold?
Are you curious about what 2023 has in store for investors? While predicting the future is an uncertain task, it’s essential to focus on the things that can be controlled, such as your investment costs and portfolio diversification. Understanding market sentiment is also crucial as it is a significant driving force in the market. In this blog, we’ll be exploring the results of recent surveys and expert predictions to get an idea of what people believe will happen in the coming year.
Risks in 2023
The Global Risk Report from the World Economic Forum asked respondents to rate the top five risks that will have the most severe impact on 2023. Here’s what they found:
- Energy supply crisis
- Cost of living crisis
- Rising inflation
- Food supply crisis
- Cyber attacks on critical infrastructure
Expert Predictions for 2023
Visual Capitalist analyzed over 500 publications and statements made by industry experts like the IMF, Goldman Sachs, and Vanguard to see which predictions were most common. Here are the top 25 predictions in order of popularity:
- Artificial Intelligence will become ubiquitous
- High risk of a global recession
- The US dollar surge will come to an end
- Bonds will be a good investment option
- Interest rates will peak in 2023
- Positive outlook for emerging markets (especially commodity exporters)
- Real global GDP growth between 1.5% and 2%
- China’s economy will recover after reopening
- Value will be more important than hypergrowth
- Inflation will cool off but remain above target levels
- Regulators will crack down on TikTok and other tech companies
- Energy will remain expensive
- No Taiwan invasion
- The crypto winter will continue
- Broad equity indices will rise
- Google’s dominance in search will loosen
- The Russia – Ukraine war will not end in 2023
- Silicon Valley will follow Elon Musk and cut staff and costs
- Work culture will continue to shift towards flexibility
- Tension between citizens and governments will increase
- European unity will be tested
- Education will face disruption from various angles
- India will have a strong year
- More big retail brands will launch recycling programs
- More manufacturing will shift away from China
It’s interesting to see that some of these predictions have already started to come true, such as tech firms reducing staff and the increased use of A.I.
Global Stock Market Sentiment
The IPOS Global Advisor Survey gathered results from 36 different countries and over 24,000 adults. Participants were asked whether they believed “major stock markets around the world will crash” in 2023 and were asked to respond with “likely” or “unlikely”. The results showed that 50% of people believe that a global stock market crash is likely in 2023, while only 31% believe it’s unlikely (19% did not answer either way). This is a 13% increase in negative sentiment compared to the results of the survey in 2022.
It’s worth noting this increase in negative sentiment, as it can be a powerful driving force. However, it’s important to keep in mind that many of last year’s predictions did not come to fruition, so it would be unwise to make significant changes to your portfolio based on this data alone.
We arrange bespoke solutions for our clients, providing a tailored one-to-one advisory service, delivered face-to-face or remotely, depending on what suits you.
Please click on ‘Become a Client, Enquire Now’ at the bottom of the page and complete the enquiry form and we will normally contact you within the same working day during business hours or if you would prefer us to contact you outside normal business hours then please advise and we will quite happily do so. Alternatively you can email us with details about your requirements to info@fircogroup.co.uk or call us on 0151 372 0388
The above article is purely for information purposes and does not constitute advice.
Past performance should not be taken as a guide to future performance. The underlying value of investments, and the income from them, can go down as well as up, and you may not recover the full amount of your original investment.
