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6 value stock picks for 2023 from successful money managers


After a year of stock market decline, there is no shortage of recession predictions for 2023, especially as the Federal Reserve has signaled it will continue to raise interest rates to combat inflation.

It turns out that value stocks – stocks of mature companies that trade relatively cheaply relative to expected earnings – perform quite well in 2022:

Datasets

The S&P 500 Value Index is down just 5% in 2022, with dividends reinvested, while the entire S&P 500
SPX,
+2.28%

down 18% and the S&P 500 Growth Index fell 29%.

With the same macro forces as last year, Michael Brush interviews three successful value-driven money managers who share their outlook on corporate earnings and a possible recession. , and also name six value stocks for 2023.

Stock options for multi-year commitments: 20 stocks Goldman Sachs expects to gain the most from Washington’s clean energy spending

The job market is finally slowing down

At this point in the business cycle, any news that the U.S. economy is strong could spook investors, on fears that the Federal Reserve’s protracted interest rate hike cycle will continue. The state to fight inflation will push bond and stock prices down as they have been. in 2022.

Following the logic of “bad news is good news”, stock investors cheer Employment Summary from the Bureau of Labor Statistics on Jan. 6. The report shows the US added 223,000 full-time jobs in December — the lowest monthly employment increase in two years.

Then again, that number was a surprise. The consensus estimate among economists polled by the Wall Street Journal is that 200,000 jobs will be added in December.

Jeffry Bartash passed away an insight into December employment numbers.

Rex nutting argues that The Fed has set up a soft landing for the economy, as long as it doesn’t damage it.

Look forward: The Fed’s message to the stock market—massive rallies will only prolong the painful inflationary war

Big change for the global bond market

Former European Central Bank President Mario Draghi played a role in adopting negative interest rates amid stimulus efforts.

AP

A contrasting outcome of the protracted stimulus cycle by central banks has been the “renewal” of negative-yielding government bonds in Europe and Japan, peaking at more than $18 trillion. la in 2020. This created what could be seen as a new tax on banks and insurance companies forced to buy government bonds with negative yields by regulation. Now the bond market is returning to normalas Joseph Adinolfi reports.

How to sell a home in a sluggish real estate market

Getty Images / iStockphoto

During the long U.S. seller’s housing market, buyers in hot markets often paid high prices. But now everything has changed. Here are the concessions that home sellers are making to complete the transaction.

More information on the housing market from Aarthi Swaminathan:

Don’t run after achievements

beautiful pictures

In any given calendar year, some money managers with specialized strategies will outperform the stock market as a whole. Some investors will want to get in after a mutual fund or ETF has had a stellar year. Mark Hulbert explains why chasing fund performance tends to underperform.

Continue reading: No one knows which stocks will drive the next bull market, but they probably won’t be the winners in the bear market.

More crypto shoes could fall

Terrence Horan, Dow Jones

After a year of too many corporate failures in the crypto space, 2023 has begun with more uncertainty, including mass layoffs and consider filing for bankruptcy by Genesis Global Trading, according to the Wall Street Journal Report.

Genesis Global Trading is owned by Digital Currency Group, which also owns Grayscale Investments, the manager of the Grayscale Bitcoin Trust.
GBTC,
+2.37%
.

GBTC has $10.6 billion worth of assets under management. Its closing share price was $8.45 on January 5 – a 45% drop from the fund’s bitcoin value
BTCUSD,
+0.10%

holdings, is $15.38 a share, according to Grayscale.

MarketWatch Editor-in-Chief Mark DeCambre summarizes this week’s developments in the cryptocurrency industry in distributed ledger news.

Bond I is still hot

Last year, you could buy Series I savings bonds from the U.S. Treasury at interest rates as high as 9.62%. The current rate is 6.89%. Beth Pinsker explains How you can maximize your interest on I-Bonds.

Mounting layoffs at big tech companies

AFP via Getty Images

amazon.com
AMZN,
+3.56%

and Sales Force
CRM,
+3.06%

announced mass layoffs this week, and analysts at Morgan Stanley are call for a greater reduction in the number of people per capita at major technology companies. James Rogers has maintained a running list of tech layoffs.

More information on layoffs and related business development:

Your retirement account in 2023

If you’re self-employed, you can substitute contributions into your pre-tax retirement account.

Getty Images / iStockphoto

If you contribute to an individual retirement account, the amount before tax you can contribute this year is capped by the Internal Revenue Service at $6,500. If you have a 401(k), 403(b) or similar employer-sponsored account available through your employer, your annual contribution limit for 2023 is $22,500, plus a $7,500 “catch-up” contribution if you’re age 50 or older.

But what if you want to save more for retirement, with a tax advantage? Many people can do the same — This is the way.

Related: Roth IRA conversion — take advantage of this limited-time offer to save on your tax costs

What’s wrong with a little competition?

The Federal Trade Commission has proposed new rules that would ban non-compete clauses in employment contracts. Andrew Keshner and Emma Ockerman explainhe disputes the proposed changes.

Life without Loa

Representative Kevin McCarthy (R., Calif.)

AFP via Getty Images

Rep. Kevin McCarthy (R., Calif.) continued his bid to become the next Speaker of the House, but continued to lose votes when about 20 members of the Republican Party of the House of Representatives voted against him. Here’s a continuation of this evolving story:

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