deVere founder,Nigel Green outlines 4 themes to shape investments in 2023

By Onome Amuge 

Nigel Green,the chief executive officer and founder of deVere Group, one of the world leading independent financial advisory, asset management and fintech organizations, has identified four over-riding investment themes that investors will be watching and positioning for in 2023 in order to build their wealth.

As global investors and savers take stock of a rocky year gone by and design portfolios for the one ahead, Green posits that the four major themes will shape the investment landscape in 2023.

Highlighting the first over-riding investment theme, Green noted that inflation is likely to peak in most major economies.

“As inflation begins a return to target, the cost of living will drop for consumers and central banks will ease their feet off the economic brakes, going easier on interest rate hikes before winding down,” he said.

The deVere Group founder also noted that wage inflation remains an issue, but said this should ease through the year.

The second theme is based on the reopening of China’s economy following its struggle to contain the Covid-19 pandemic.

“China’s economy – the world’s second largest – is coming out of hibernation after three years of coronavirus restrictions,” observes Nigel Green.

This, he explained, could be the most visible, most anticipated, and most impactful upside boost for global markets seen in recent times.

Green identified the weakening U.S. dollar as the third theme likely to shape  the global investor mindset in 2023 as they seek to create and build wealth after a challenging 2022. He,however, noted that the dollar is expected to strengthen to peak in mid-2023.

“A strong dollar has hit both developed and emerging markets globally, fuelling Inflation and raising the cost of imported goods. It has also added to the need for some central banks around the world to tighten their own financial conditions. This will all ease when the dollar’s supremacy weakens,” he explained.

Green also noted that the rotation towards growth stocks will play a major role in determining investors’ decisions in 2023.

 According to him, as cost-of-living eases and global growth picks up pace throughout 2023, investors will be seeking to increase their exposure to growth stocks.

“These are stocks that grow at a rate higher than the market average, typically such as tech stocks,” he added.

In his assessment of the global financial markets, Green observed that global stock markets fell by a staggering 18 per cent in 2022 on average, while bond markets – traditionally a safe haven in times of volatility,have declined by 12 per cent averagely.  He also noted that the cryptocurrency market in the year has been ‘particularly punishing’.

“The downward moves of financial markets have wiped tens of trillions of dollars in wealth over the last year,” he said.

This, according to him, is why investors and savers are more alert than ever to the major themes that will define the year ahead.

 On a positive note, the chief executive of deVere Group predicted  more favorable conditions for the year ahead.