Stock Market Performance In 2023: Will It Crash or Perform Well?
Ever since the pandemic hit doors on the stock change, the whole economic spectrum has changed.
People have faced major losses, especially during the pandemic, when businesses around the world were behind closed doors. Even the start of the Russia-Ukraine left a major scar on the global market.
Especially with the rise in the price of oil and gases.
But as the market slowly started to open, the inflation rates started going down, evidently pushing towards normalcy.
Even the stock market is recovering. However, people fear the worst with the rise of the technology industry. It is performing well.
Therefore to know more about the condition of the stock market. Let me start by answering the real question –
Is Stock Market Crashing?
Well, chill! The world isn’t Gotham City. We are all Batman of our world. So, to answer the question, it’s NO. The stock market is safe and healthy.
Since the pandemic, people have had to invest heavily in stocks, as Covid-19 has made people realize the value of financial assets. Therefore, you can sleep with ease and trade.
In June, Nifty rates hit a record high for the first time, showing that there will be more growth in recent years.
And still, if you don’t believe us, here are a few –
Reasons To Believe Stock Market is Healthy
The pandemic, the Russia-Ukraine war, the global food and water crisis, and the stock market is doing well.
This is not the London Stock Exchange crash 2008, just little irregularities that will be recovered by the rest of the year.
Apart from that, here are a few reasons for you to believe –
Inflation Rate!!
According to the reports of June 2023, the inflation rates of all countries are going down. As of now, the inflation rate of the USA is 4%, and for China is 0.2%. Thus, showcasing that the recovery process is going well.
It is because the second-world people are bringing in more business and helping the world recover. From the Middle East to India, all have been on the world stage doing great business.
Further, companies like Microsoft are doing business with UK companies, effectively bringing in more money in the US.
Also, you can open Roboforex to learn more about stock prices.
Interest Rates
I know there is talk of global recession, as the interest rates are rising sky-high, especially after the condition in the UK housing interest rates.
The interest rose by 25% last September. And since then, the interest rates are going down. According to recent reports, it has decreased by 4% across the UK.
There is a reason behind the rise in interest rates. It is limiting the purchasing capability of people. This can help the government to keep a check on the economy and restart its financial planning.
Further, there is a rise in Fed rates in the US, which is likely to increase to help the US economy to recover. Along with this, there is a rise in student loans, which is also troubling the US economy.
Even the supreme court has gone against the President’s decision to refuse the loan.
Therefore, it is wise not to use your credit cards much if you don’t want to enter the debt trap. You don’t want another Great Depression, do you?
The Growing Tech Industry
One of the things that happened after the pandemic was the surge in digital investments. With numerous companies entering the tech world and performing well. This can be seen in the rise of the S&P 500 during the last year.
Today, the price of the S&P 500 stocks is 4514.59 – 4562.30 USD, a 32.71% rise since June. This is a good sign for the stock market.
Further, you can see big players like Microsoft, Hathway, and Apple entering the Ed-Tech industry and trying to create employees for future needs.
Companies like Meta, Microsoft, and others are entering into developing AI, which is another sign of good market performance.
The Grass Is Looking Greener On The Other Side
In conclusion, the only con is the rising interest rate, but it is not enough to make us worry about the stock market.
You can invest easily, especially in technology, which has grown recently. From E-vehicles to biotech and Ai, there is a range of stock you can buy and sleep well,
Those stock prices will rise shortly.