3 Month Stock Market Outlook

Many investors, flush with cash are wondering where they might invest now that the market looks like it might turn upward.

And some forecasts from Refinitiv suggest the last quarter of 2023 will be great while others such as Michael Wilson of Morgan Stanley believe the recession has already started. If that’s the case, you’ll want to get acquainted with a recession hedging strategy.

 

Previous dour predictions haven’t come true, and although the Republicans want to hold the Dems accountable for their catastrophic management of the economy, they aren’t really balking at raising the ceiling. What’s really being negotiated is Biden’s spending plans. See below for more discussion on what’s ahead for the Summer of 2023.

After you digest the immediate market conditions, you’re ready to move onto this 3 month forecast report. Then you can review the 6 month projections, 5 year and 10 year outlooks. Each tap into a different set of statistics, signals and factors.

 

What should you be Focusing on as You Get Ready to Buy the Best Stocks?

You’ll find some good ideas to start with below. Barchart provides a great charting tool and you can subscribe to use the stock screeners for $16.67 per month with their top package. You can monitor price trends and get info on company reports. They have their top recommended stock lists too, backed by data which shows some stocks with strong upward momentum.

Momentum through this 3 month period is important because good companies have made their transition. Other investors including hedge fund managers see their earnings reports and price trends. The momentum then also suggests support by investors for these stocks.

This isn’t by the way, a recommendation of any particular stock, sector or index. You and your stock investing advisor must evaluate each carefully. This is just a pointer to help you find top value for your investment dollar. It’s not going to earn much in a savings account and you could get rich with the markets heading much higher over the next 5 years. Buy and hold. See more about the 2023 2024 2025 market projections.

American’s savings holdings are growing strongly according to the latest BEA reports which means even more money has poured into the money markets. And banks are not recommended as a safe haven for holding assets. The banking sector is a worry and banking stocks are very risky, even if some have jumped back recently.  For that reason, investors like yourself are wondering what you might invest in during this supposed dip in the markets.

 

Let’s assume this is a short dip before a rise (manufacturing is down, job growth subdued). Refinitiv’s reports such as much stronger Q4 2023, and Q4 2024 which means your investment in stocks will grow. While your plans are for the 3 month time period, the real success is in a 5 year view.

Let’s beware of false profits pushed by the media. Morgan Stanley’s Mike Wilson predicted the stock markets would plunge by spring 2023.  Didn’t happen. And Wilson forecasts the S&P 500 will reach 3,900 by end of next year, and low corporate earnings will cause it.  Consumers are hoarding cash, but if FED rates fall, mortgage rates fall, the economy has little to prevent it from roaring again.

David Kostin, Goldman Sachs equity strategist David Kostin has vacillated on his predictions of the S&P from 4300 down to 3600 and now back up to 400.  Honestly, the average Joe could forecast better than that.

For the next 3 summer months, consumer spending should rise as gasoline prices have fallen, and the latest job and wage reports are solid. Americans may not be travelling internationally nor buying foreign products with the low US dollar which as slipped to 101 on the index. That the US greenback buys less foreign goods and US manufacturers will find exports picking up.

When the FED rate falls, forward looking investors will be moving their money to the stock market.

What to Look for in the Next 3 Month Period?

•  the Fed will begin lowering bank rate by September
• unemployment will rise slightly as multinationals layoff workers
• China continues to slowly open its economy thus buying more products/materials
• corporate earnings reports will lower over the summer
• oil prices will continue below $80 dollars a barrel (As Biden SPR oil onto the market)
• The OPEC cartel will respond with big cuts to support oil prices which could fall too far
• US dollar may stay low for some time
• American investors stay cautious for the most part
• those investing are trying to pick individual stocks but may let loose when the FED rate falls

Crash/Deep Recession Forecast is Retired

Some talk about a housing crash and a stock market crash, but with so much money and consumer demand present, investors and buyers may buy these assets as they become cheaper — especially if they believe the one year, 3 year and 5 year outlook is okay.  That means prices won’t go down.  Wages are strong right now and the economy looks okay.

 

Here we’re investigating the importance of the 3 month to 6 month forecast period. And this period will help us understand where the markets will be in the next 5 years.  Longforecast believes we’re in a sour period, and so far they’re right.  They believe markets will soar in 2023. They see the Dow, S&P and NASDAQ all soaring by mid 2023.

More predictions and stats: Definitely check out the general stock market outlook, the outlook for 2022, next 6 months, next 10 years, and find the best stocks to buy here on the stocks blog.

Top Stocks Recently

And let’s continue with these high performers with last month and last 3 month price performance.

Here are the top stock pick recommendations from Barchart. Outstanding performance!

The key factors in the next 3 months are:

1. flat oil and commodity prices
2. flattening Fed interest rate signals the worst is now over with crushing rates
3. Europe has turned the corner and has dodged its energy crisis
4. slow growth in China depresses investment Asia, which means more interest in the US
5. employment rates begin to fall and wages start to turn downward
6. corporations slimming down to achieve impressive levels of efficiency draws investments from the money markets which will see diminishing returns

Good luck with your quest to find the best stocks to buy. This 3 month’s of market volatility will provide some low points for you to gain the best possible returns. The 5 year outlook ensures at some point, you’ll be selling at a huge profit. The future looks good!

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