📈 New Year, New Opportunities

Good Morning!

Welcome to The Investing Journal! It's the last newsletter of the year, and boy, has it been a wild ride.

Despite all the turbulence, US stocks are finishing the year on a high note with a sharp rally with the dollar set for it's biggest annual gain in years.

As we reflect on 2022, it's been a tough year for investing to say the least. But we've also seen some big winners emerge. In this newsletter, we'll take a look back at the year that was and summarise some top stock picks for 2023 from market experts. If you're looking for a bargain, there are some ideas for stocks that might be a "once-in-a-decade" buy.

Have a good New Year and we'll see you in 2023.

Markets

U.S. stocks close sharply higher in year-end rally after jobless claims data (5 minute read)Keeping investors on their toes as we enter 2023, the US stock market had a great week, with the Nasdaq Composite rising 2.6%. This followed a report that the number of people receiving unemployment benefits has hit its highest level since February, which could mean that the Federal Reserve's interest rate increases are slowing the economy. This was a hopeful sign for the market after the traditional "Santa Claus rally" didn't happen earlier in the week.

U.S. dollar index set for biggest annual gain since 2015 (5 minute read)This week, the dollar was having a banner year, on track for its biggest annual gain since 2015. Against a basket of currencies like the British pound and Japanese yen, the dollar has gained a whopping 8.6% this year, its largest annual jump in seven years. But don't get too excited, because it has given up some of those gains in recent weeks as investors expect the Federal Reserve's rate hike party to come to an end in 2023.

European stocks lower, ending a brutal year on a weak note (7 minute read)European stocks slipped as investors remained cautious at the end of a difficult year that included Russia's conflict in Ukraine, high inflation, and tighter monetary policy. The pan-European STOXX 600 index is expected to fall around 12% this year, its worst performance since a 13% drop in 2018. This could lead to a downturn in the Eurozone early in 2023, and the Bank of England has already stated that the UK economy is in a prolonged recession.

2022: In a word, whiplash - A recap of a monumental year (6 minute read)Investment Week's Eve Maddock-Jones explores month-by-month how 2022 played out for investors. We started off the year with Apple reaching new heights as the first publicly traded company to hit a $3 trillion valuation. Things took a turn in February when Russia decided to invade Ukraine, causing all sorts of chaos like high inflation, spiking oil prices, and a global supply chain breakdown. And who could forget September, when Liz Truss made history as the UK's shortest-serving prime minister, before she was forced to resign following the release of her now infamous mini budget. What a year!

Investing

These are 2023′s top stock picks for what could be a rocky year (7 minute read)It's not looking great for the stock market, with several indicators almost guaranteeing a recession. If one does happen, the S&P 500 could drop around 30% from its highs on average, and earnings could shrink by about 20%. CNBC's Michael K Farr's top picks for 2023 include companies with strong financials, downside protection, and upside potential. Many of these are well below their highs and some are still downright unpopular.

Down 72%, Is Tesla Stock a Once-in-a-Decade Buying Opportunity Right Now? (5 minute read)This year has been rough for the S&P 500, and electric car company Tesla has been hit particularly hard, with its share price dropping a whopping 72% year-to-date. In fact, Tesla has never experienced a sharper decline at any point in its history. Six analysts have even downgraded the stock in the past two weeks. So, is this a once-in-a-decade buying opportunity? Or should investors steer clear of this troubled stock? The Motley Fool present the bull and bear case for Tesla investors.

The 7 Best Books On Trading Psychology for 2023 (14 minute read)Trading psychology is an essential skill for anyone wanting to succeed in the stock market. It involves understanding how emotions and behaviors can drive decisions, and learning how to manage those emotions so that they don’t cause mistakes or losses. From beginner guides to advanced tactics, we compared 7 of the best books you can read on trading psychology going into 2023.

Money

10 Ways to Improve Your Future Financial State (7 minute read)A study in 2022 found that a shocking 63% of Americans were living paycheck to paycheck by September of that year. While saving money might not seem thrilling in the short term, it's crucial for the long run. If you want to improve your financial situation in 2023, here are ten steps from DUE you can take now.

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