Today is the first day of trading for 2023. Markets closed slightly lower last year and the year ended as one of the worst since 2008, with the market down over 20%.
Futures are slightly up, like a ray of sunshine peeking through last year's cloudy overcast.
Some Things to look out for in 2023
Central Bank Digital Currencies (CBDC) are a big rage now. Multiple countries are either working on one or have one already in circulation on a test basis. China began in 2020, India started last year, the European Central bank has it in the works, and the US Federal Reserve will roll something out this year. What the benefits of these digital currencies will be is still up for debate since they are not commonly used at the moment, but central bank-backed digital currencies will likely have a great impact on the US Dollar as it relates to being the world reserve currency.
Europe is still in the midst of an energy crisis due to ill-advised handling of its energy policies. The demand created by this situation will feed energy prices and likely keep oil and natural gas stocks a good pick for much of 2023.
Stocks to Watch
Boeing (BA) receives multiple raises. Orders could be coming in in 2023, with or without China.
Goldman Sachs (GS) along with some other financial institutions received raises. If inflation comes under control interest rates will be moving lower again. High-interest rates at the moment also make people more likely to sit on cash, which is benefiting the banks.
Elli Lilly's (LLY) price target was raised to $400 from $395 by Barclays. The company has a great pipeline and a great stable dividend.
Mondelez (MDLZ) the snack maker behind such brands as Nabisco receives a downgrade to sector perform. Will New Years' resolutions will have many consumers walk past the snack aisle until later in the year? Possibly.
Merck (MRK) target raised. Overall good stock in the current environment.
Tesla (TSLA) receives multiple downgrades after a disappointing earnings report. The company delivered a record number of vehicles, but fear of oversaturation of the EV market and slowing demand is scaring investors.
Happy New Year!
The Punkrock Capitalist
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