3 Signs a Bull Market Could Be On Its Way in 2023
Having come off an extremely challenging year, there are some signs that 2023 will be a lot better for investors, particularly for shareholders of stocks like Boeing (NYSE: BA), Raytheon Technologies (NYSE: RTX), and General Electric (NYSE: GE). All three stand to outperform in a market that could surprise on the upside. Here are three reasons why.
Markets are always volatile when the Federal Reserve is in a tightening cycle. There's no end to the discussion of impending recessions, and no one knows just how far the interest rate hikes will go. Moreover, rising interest rates make investment and spending more expensive, which usually means slower growth and pressure on company earnings.
That said, the implied view from the bond markets is that rates could be lower in a year. We know this by looking at market rates on U.S. Treasury Bills. As you can see below, longer-dated debt (in this case, 10-year Treasuries) usually commands a premium rate over short-dated debt, because investors want to be compensated more for lending over more extended periods.
Source Fool.com
