Outlook for 2023: Stock markets will ‘easily’ drop to ‘pre-COVID levels’ – Gareth Soloway

(Kitco News) – The S&P 500, down 15% from 2022, will “easily” reach “3300” in 2023, said Gareth Soloway, Chief Market Strategist at IntheMoneyStocks.com, who uses analytics technical analysis to forecast market movements, said. The S&P 500 is currently trading around 4,000.

“It makes complete sense that we’ll at least go down there [to 3,300]”, he said. “That’s the best-case scenario, according to the chart… [but] we can get it down to about 3,000 by 2023.”

Soloway’s price prediction record is historically accurate. He called for Bitcoin to peak at $69k by November 2021, which it did. He also said in October 2021 that gold will outperform Bitcoin in 2022, a forecast that turned out to be correct.

Soloway joined Kitco Presenter and Producer David Lin for his Prospects for 2023, live on December 9, 2022.

macroeconomic outlook

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The Federal Reserve continues to raise interest rates to quell inflation, which has peaked at 9.1% in 2022. Soloway thinks that in 2023, inflation will remain high.

“I think inflation will remain elevated,” he said. “High means 3 to 4 percent, and maybe 5 percent… Inflation will stay at 3 percent for at least two years.”

He explained that “wage inflation is going to be severe” and that because wages are increasing, businesses will raise prices to offset the higher cost of wages. However, he added that the inflation rate will tend to decrease.

“Price at the grocery store will still go up over time, just not as quickly,” he said. “It’s going to hurt the economy. There’s no doubt retail investors and Americans in general will feel the crunch in 2023.

Overall, 2023 looks very bad, according to Soloway, who is predicting high inflation, high interest rates and a weak economy.

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“We [will] There’s inflation, and then the Fed will push us into a recession that they can’t get us out of,” he said.

Invest in a bear market

Soloway, who has previously stated that the stock is in a bear market and will stay that way for “at least” 10 to 15 years, however, suggests that there are money-making opportunities in the bear market. down.

“There are places to go [in 2023]”, he said. “There is gold. Gold is a great performing asset.”

He also suggests that bear markets offer many opportunities for swing traders.

“Long-term investors have had a field day since the Fed started bailing out the market,” he said. “Now it’s becoming a merchant’s market, where you buy, but then you can’t hide it for twenty years. You want to profit and run away, and buy in on the next drop. .”

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For Soloway’s predictions for the best property of 2023, check out the video above.

Follow David Lin on Twitter: @davidlin_TV

Follow Kitco News on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco . Metal Corporation The author has made every effort to ensure the accuracy of the information provided; however, both Kitco Metals Inc. and the author cannot guarantee such accuracy. This article is for informational purposes only. It is not an invitation to make any exchange for goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accepts no responsibility for loss and/or damage arising from the use of this publication.


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