The world economies are going through a lot of macroeconomic challenges. Growth is hard to come by for several developed counties. Inflation remains a challenge, and overcoming it is critical for countries to return to the growth path. India is relatively better placed in inflation management and growth. We should do better than the rest of the world, but we are still short of achieving the growth that can take our economy to a much-desired level.
The investment outlook is likely to be mixed in 2023. Global factors will weigh on investors’ minds. Debt markets will create crises for equity markets. Equity markets will struggle to raise fresh capital. Companies may be forced to do M&A for the sake of survival. Valuations are likely to remain soft in 2023.
All these forecasts may make an investor wonder whether 2023 is a good or a bad year for investing. Without a doubt, 2023 will be a good year for investing. The reason is simple, opportunities will be far more attractive, and investing will be enabled by disciplined strategies. Investors will be able to deploy more money at attractive valuations. Returns may look subdued in the near term. What an investor does in 2023 will determine his long-term wealth creation significantly. In that sense, 2023 is a far more important year than 2022 was. Every investor must understand the significance of investing more diligently in difficult times and use 2023 as an opportunity to take their investing to the next level.
Opportunities will be attractive in both debt and equity investing. Investors should strike the right balance between asset classes. Investors must scale up each asset class when it is more in favour. Investors must use corrections in specific asset classes to invest more capital in them. The new year will see a different mood setting in FIIs, and that will set the trend for the 2023 budget trade. January promises to be an active month for the stock markets.