The Best Stocks to Buy Next Year as Inflation Dies

Here’s my grand proclamation for next year: What worked in 2022 will crash in 2023; and what didn’t work this year will soar next year!

I’ve beat this drum all year long, but it’s worth one more drumroll into year-end… That is, all bear markets eventually turn into new bull markets. And an overwhelming amount of evidence today suggests the 2022 bear market is about to turn into a 2023 bull market.

Stocks crashed in 2022 because of a confluence of adverse macroeconomic trends. Inflation soared.

The Fed aggressively hiked interest rates. Fixed income yields soared. Corporate profit margins got squeezed.

Those are the sorts of trends that tend to hurt stocks and in 2022, they all came together at once. No wonder stocks got crushed!

But in 2023, the stage is set for all those trends to reverse course. So, which will be the best stocks to buy for the next year?

Energy stocks, which soared in 2022, will not work in 2023. And while short bonds have worked like a charm this year, long bonds will be the go-to theme for Treasury traders. The housing markets? Well, we know how that played out this year thanks to rising interest rates. If rates do fall next year, then we can expect to see housing stocks soar!

Most importantly for us? Hypergrowth tech stocks. High-risk, high-reward tech stocks have been crushed in 2022, but we think the market will regain its enthusiasm for emerging technologies in 2023 as the macro environment becomes conducive for growth stocks. They could prove to be the best stocks to buy for the incoming year!

Catch the full episode at Hypergrowth Investing on YouTube.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.