Weekly Update 16 January 2023
A year rarely starts as well as 2023 has done.
Despite current economic resilience, investors remain pessimistic about next year. Could this be wrong?
In 2022, part of the bubble in Growth stocks deflated as Value stocks beat Growth stocks by 20 percentage points.
If the economy holds up, we see 50%+ upside for many of the positions in our portfolio.
European equities are under-owned at the moment; cyclical European companies should outperform.
The S&P 500 index may fall to the low 3000s next year, possibly as early as Q1.