Here Are the Most Popular Stock Market Predictions For the Rest of 2023
Key takeaways
- The stock market is full of twists and turns, as already proven in the first half of 2023
- Two more Fed hikes, Japan’s triumph and Tesla surge all predicted
- But nobody can time the market, so AI investing is a handy tool in helping with the heavy lifting on the research side
Trying to predict what the stock market will do next is a bit like looking into a crystal ball and hoping for the best, but some popular predictions about what might happen in the second half of 2023 are worth looking at. We’ve rounded up the top guesses on the grapevine.
Take the guesswork out of investing with Q.ai’s Foundation Kits, which have different risk profiles and topics to suit seasoned pros and investing newbies alike. The secret ingredient is a nifty AI algorithm to do the heavy lifting with the data, helping you make smarter investing decisions and stay one step ahead.
Download Q.ai today for access to AI-powered investment strategies.
What are the stock market predictions for 2023?
Two more Fed hikes
The Federal Reserve has been on a tear with its monetary tightening policy as it tries to cool inflation down. While headline inflation is trending nicely downwards, core inflation has accelerated slightly, which is a sign there’s further to go with interest rates. Fed chair Jerome Powell’s hawkish comments after the June meeting pretty much confirmed it.
Cue the markets thinking there are a couple more interest rate hikes on the way before the year is out. The CME FedWatch tool is currently at a near 77% likelihood of a July increase, but has a 30% possibility of a rate cut by the time we hit December.
Japan will outpace the U.S.
After three long decades of stagnation, the Japanese stock market is back with a bang in 2023. The Japanese stock market is up nearly 30% this year, compared to the S&P 500’s 14.3% year-to-date gain.
As a result, Japan’s stock market gains are set to outpace the U.S. and other major markets for the first time in thirty years. And the gains look to be for the long term — legendary investor Warren Buffett, famous for his value plays in the market, has just increased Berkshire Hathaway’s stake in five Japanese companies.
Tesla stock will continue to gain
We get that it’s basically sacrilegious to predict a Tesla stock fall — and we’re not about to do it. While Tesla is a volatile stock thanks to its eccentric CEO, Elon Musk, the recent news around rivals Ford and GM buying into its EV charging network sets the stage for Tesla to continue its EV domination in the U.S. market.
Not to mention Tesla’s rumored AI developments and the much-awaited Cybertruck release, which Tesla superfans are hyped about. We’re calling it now — the stock definitely has some more room to grow, even if it is in massively overbought territory.
The bottom line
While these predictions are based on current sentiment, anything could change in the blink of an eye — and send new stocks soaring or plunging. Nobody truly knows how the stock market will go, but that’s part of the excitement. If you’re not up for the rollercoaster ride, consider using AI investing to help make the most of your investing strategy.
Save yourself the energy of trying to time the stock market with Q.ai’s Foundation Kits, which utilize the power of AI to make smarter investment decisions. The AI sifts through massive amounts of data to predict which assets might perform well, then dynamically reallocates funds in the Kit’s holdings to help grow your returns.
Download Q.ai today for access to AI-powered investment strategies.
