Wall Street expects Chinese and US IT stocks to rise in 2023

Wall Street expects Chinese and US IT stocks to rise in 2023
Posted by:Alex Belov Posted on:Dec 12,2022

Many managers of large investment funds list Apple, Amazon and Alphabet (Google) as the most promising stocks in 2023.

Some major participants in the global stock market expect stocks to rise by 10% or more in 2023, according to Bloomberg. The main reason for the growth of shares is related to the expectations that inflation in the US has peaked and in the near future the Fed will begin to pursue a more accommodating monetary policy. 71% of survey respondents expect US stocks to rise in 2023. Only 19% of the polled respondents expect stocks to decline. At the same time, the average forecast for the growth of the stock market is 10%. This survey was conducted by Bloomberg News journalists. The survey involved fund managers and strategists from large investment companies. A total of 134 experts from Goldman Sachs Asset Management, Amundi SA, BlackRock and other asset management companies were interviewed.

Recall that a similar survey was conducted last year. Experts called aggressive monetary policy by central banks the biggest threat to the US stock market in 2022. Forecasts and fears of experts for 2022 came true in full.

Forecast for US and Chinese technology stocks for 2023

Most experts believe that U.S. tech stocks, which crashed heavily in 2022 due to rising interest rates, could be attractive buys in 2023. About 50% of experts surveyed in 2023 will selectively buy shares of technology companies. Experts believe that the most promising US technology stocks in 2023 will be Apple, Amazon and Alphabet (Google).

Some experts are bullish on Chinese stocks. The fall in the Chinese stock market at the beginning of 2022 resulted in the valuation of Chinese companies being below the average for the past 20 years. The low valuations of Chinese companies make them the most attractive compared to European and US companies.

Respondents surveyed recommend taking risks into account as the stock market could crash again in 2023 due to a deeper recession and rising inflation. It is the rise in inflation and the onset of a deep recession that are the main reasons for concern in 2023. More than 40% of the surveyed stock market participants point to these risks. Experts do not exclude that the stock market will reach a new low in early 2023, and growth will begin only in the second half of 2023.

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Alex Belov

Developers by oneinveststock.com. Analyst, investor

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