2023 Is the Year Suspension of Disbelief Will Be Out the Window

Investors are in a “show me” mood as 2022 ends. This shift means the downdraft in risky assets in 2022 risks turning into a longer-term rout in 2023. If I’m right, value stocks will outperform and risk will again be shunned.

Are you in a reflective mood? I am. The end of the year is fast approaching and a new one is coming. And as I look back, I’d say 2022 was as unpredictable as it gets. But after three tumultuous years marked by the pandemic, my Spidey sense is still tingling, making me think we’ll have another Everything Risk kind of year in 2023, too. My prediction is that the downdraft in risky assets in 2022 will turn into a longer-term rout in 2023. Value stocks will outperform and risk will again be shunned.