As the world continues to recover from the pandemic and the economy begins to stabilize, investors are looking for the best sectors to invest in heading into 2023. Internet and Information Services is one of the best sectors to invest in heading into 2023. The global IT services market grew from $3,471.35 billion in 2020 to $3,566.51 billion in 2021 and is projected to reach $4,323.82 billion by 2023.
One of 2022's top-performing fund managers, John Freeman, built a portfolio that's invest in these 5 sectors heading into 2023: Information Technology, Healthcare, Consumer Discretionary, Industrials, and Financials. Freeman is bullish on the Information Technology sector in particular and has named three top picks from the Oil and Gas sector, with NOG being one of them.
Meanwhile, 2023 could be a pivotal year for clean energy developments from electric vehicles (EVs) to solar panels. Supply chain issues have stymied clean energy developments over the last two years, but the industry is expected to finally gain traction in 2023.
Is Equity investors' 2023 Optimism Misplaced? Equity investors are usually optimistic about the stock market, and that optimism is increasing as the world recovers from the pandemic. But due to the narrow focus of sector invest, they tend to be more volatile than the overall market. The top end of the market has high exposure to sectors that have been performing well in recent months, but it may be less appealing to invest in domestically focused companies in 2023.
The performance of the REIT sector has been a major driver of overall REIT YTD underperformance. The underperformance of these two sectors is a primary driver of overall REIT YTD underperformance, as the previously mentioned three stock are all REITs.
Colananni, another top-performing fund manager, suggests investors should focus on sectors that have the most projected earnings growth in 2023. In particular, he is bullish on Information Technology, Healthcare, Consumer Discretionary and Industrials, as well as Financials.
investors should keep an eye on the sectors that are expected to perform well in 2023. Information Technology, Healthcare, Consumer Discretionary, Industrials and Financials are some of the best sectors to invest in for the upcoming year. And, as the world continues to recover from the pandemic, clean energy developments from electric vehicles to solar panels could also gain traction in 2023.
