US, stocks have managed to prevail in 2023.
Despite a bumpy ride first, there were growing worries
, the economy would grind to a halt. Those
were heightened by the implosion of several regional banks in
March. Only to give way to a powerful stock
rally fueled by the artificial intelligence frenzy in the second
quarter, investors who anticipated a recession would force the
Federal Reserve to pivot to interest rate cuts later this
year instead are now racing for the prospect of more
rate hikes for the US bond market that likely means
short term interest rates will remain higher than long term
rates for the rest of 2023. However, equity
investors have reasons to be optimistic. As long as
us consumers remain resilient. Americans are out traveling shopping
and hunting for new homes and they have proven willing
to pay higher prices, enabling companies to pass on
rising costs and maintain a profit margins. According to
Bloomberg markets, live strategists that gives the S and
P 500 potential to extend its gains to the end
of 2023. Adding to that a weaker dollar which
makes us companies, goods look relatively cheaper in overseas
markets and inflate the value of those sales. When
repatriated, the greenback is likely to depreciate against currencies
including the pound and Euro with the Bank of England
and the ECB raising rates aggressively.