2 Causes the Inventory Market Might Have a Higher 2023 – Barron’s

There’s a good likelihood the inventory market will put up a achieve in 2023. The overarching motive is straightforward: A number of the dangerous information has already been mirrored out there.

This yr has been ugly for shares: The S&P 500 is down about 16% from its all-time excessive, hit in early January. Over the summer time, it entered bear market territory, outlined as a 20% or higher drop. The declines got here because the Federal Reserve steadily lifted rates of interest and decreased liquidity from the monetary system to squelch excessive inflation. Even earlier than price hikes, inflation itself was slicing into shopper demand and company earnings. Larger charges additionally additional scale back financial demand and make future earnings much less precious, pressuring inventory valuations. All in all, it has been a tricky mixture for equities.

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