Stock Market Outlook 2023: Risks Skewed to the Downside  | Investing.com

was the ultimate culprit behind the weakness in stocks – especially the technology sector – as well as cryptos.

Finally, it meant that yields on government bonds would soar, reducing the appeal of assets that paid zero or low dividend/yield. But as U.S. inflation started to fall, investors quickly reversed their trades, favoring equities, metals, and foreign currencies over theAs we look forward to the new year, optimism about inflation peaking is all I can think of in terms of it providing support or limiting the downside risks for stocks.

For investors to continue piling into equities, we will now need to see a strong economic recovery to help boost revenue and profit for corporates. This looks unlikely as prices are unlikely to go back down to levels they were previously .

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