Farewell FOMO! Brace for Hard Landings Next Year.
Bankruptcies are coming in 2023. Plus, a selection of the writer’s favorite columns from 2022.
Porsche was a high point of 2022.
Photographer: Krisztian Bocsi/BloombergWhat to Expect in 2023
Investors have bid farewell to FOMO and are bracing for even more impact after a year in which profitless tech firms, special purpose acquisition companies and anything crypto-related went into a tailspin.
The winnowing process will continue with debt restructurings and corporate bankruptcies rising from current low levels: Besides ongoing fallout from the failure of crypto exchange FTX, capital intensive and interest-rate sensitive sectors such as autos and real estate look vulnerable. Used car retailer Carvana Inc. has already seen two rounds of layoffs and its distressed bonds imply a high probability of default.