Here are our boldest predictions for 2023.

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In 2022, the market was shaken by Russia’s war against Ukraine and massive Fed rate increases. Some forecasts predict even more turmoil in the future of 2023.

Investors have been hit hard by the bear market, Russia’s war against Ukraine, and massive Fed rate increases in the last year. Some forecasts even see more turmoil in 2023.

These are some bold predictions for the New Year.

Tesla stock will fall further

Gordon Johnson, head for investment research at GLJ Research and a long-time Tesla fan, believes that Elon Musk’s EV business will face more challenges. He said that Tesla shares could plummet as low as $23, per Fortune.

This is a drop of about $120 from now, and it would be followed by a plunge of more than 60% for 2022.

Johnson stated that Tesla faces increasing competition and is facing demand problems. He also said that Musk is hurting stock prices by selling billions of shares and creating drama through his Twitter posts.

He said that the company was a “car company that has too much capacity and can’t sell” to CNBC.

Gold prices soar to $3,000 per ounce

Saxo Bank believes that the precious metal could have a great year, even if the traditional inflation hedge has failed to establish its footing in 2022.

The bank stated that gold will rise to $3,000 an ounce once the markets realize that inflation is unlikely to taper off soon. It currently stands at $1,800.

S&P 500 crashes once again

The index may continue to fall after losing 20% in 2022. Truist strategists say that the S&P 500 could drop as low as 3,400 next years as bleak outlooks for corporate earnings will keep stocks muted.

Although a 7.5% increase is possible, stock valuations are still “far from compelling”, Keith Lerner, co-chief investment officer at Insider previously stated.

Morgan Stanley, Bank of America, and Deutsche Bank all expect that the S&P 500 will plummet to 20% by next year.

The United States is at risk of another Great Depression

Ark Invest CEO Cathie Wood stated in a series November tweets that Fed is “ignorant deflationary signs” and that the economy may slow further until it resembles the scene before the Great Depression.

Wood warned that the Fed raised rates in 1929 in order to curb financial speculation. Then, Congress passed Smoot-Hawley in 1930. This placed tariffs of 50%+ on over 20,000 products and pushed the global economy into the Great Depression. “If the Fed doesn’t pivot, the setup will look more like 1929.”

A country may ban meat production

Saxo Bank once again leads the pack of boldest predictions. Its analysts predicted that net-zero targets would force a nation to go meatless in 2023.

The bank stated that next year “at least one country will be looking to outrun others in marking its lead in climate policy race, moves to heavily tax meat starting in 2025”

The decline in home sales is expected to continue for more than a decade.

Redfin says that would-be buyers will be slow to sign mortgages due to persistent inflation, housing unffordability, and fears of a recession. This will lead to a decline in home sales. Redfin expects that there will be approximately 16% less home sales next year than 2022 at around 4.3 million.

Redfin stated in a year-ahead outlook that “Mortgage Rates will be the main stage in 2023 with high rates likely making it the slowest housing market year since 2011”.

Business Insider has the original article.
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By: prosen@insider.com (Phil Rosen)
Title: Here are the boldest predictions for 2023: Crashing stocks, another Great Depression, and a meatless nation.
Sourced From: markets.businessinsider.com/news/stocks/boldest-market-predictions-2023-stocks-tesla-stock-crash-great-depression-2022-12
Published Date: Fri, 30 Dec 2022 12:00:00 +0000