2022 was a very active year for the markets. Where to Invest in 2023 In the last days of the year, the sharp two-way movement in the exchange rates was engraved in the memories. 2023 is also expected to be active. So what will the markets watch in the new year? Where should savers use their savings?
THE FIRST 3 MONTHS ARE IMPORTANT
In addition to the global developments, changes in the economy management, interest rate cuts and fluctuations in the markets, especially in foreign exchange, left their mark on 2022. The currency-protected deposit product, which was introduced in the last days of the year to stop the interest of residents in foreign currency, seems to have eased the tension to some extent. However, the first 3 months are important to tell whether the new product has been successful or not. Because how much of a shift there will be from both DTH and TL deposits to this product will also show whether the stability will be achieved in the exchange rates.
Do you take dollars?
Where to Invest in 2023 Currency-protected deposits announced on 20 December took the expectations regarding foreign exchange investment to another dimension. The decrease in the share of foreigners in money and capital markets made the domestic investor the main actor in foreign exchange. Therefore, the attitude of the domestic investor determines the direction of the exchange rates. There are two types of investor profiles here. One wants to protect the value of TL assets against foreign currency, and the other wants to protect against inflation.
Fall is not talked about much.
There is no temptation to buy foreign currency when there is a product such as currency-protected deposits. Because both your interest income is guaranteed and a possible increase in exchange rates above the interest is covered by the government. In addition, possible decreases in exchange rates are not discussed. In other words, when the currencies that buy foreign currency directly decrease, they will see a meltdown in their principal, while those who make currency-protected deposits will continue to earn interest income.
Inflation-indexed products (deposit, bonds…) may also emerge if those who want to protect themselves against inflation start to have an impact on the market. For those who want to invest in foreign currency, Eurobonds, which offer an annual interest rate of 8 percent, can be an alternative.
When is the expected rally in crypto?
Where to Invest in 2023 The expected rally in cryptocurrencies in the last quarter of 2022 did not take place. This expectation has been postponed to the first quarter of the new year. Especially before the Fed’s interest rate hikes, the number of people waiting for a sharp upward movement is quite high. However, it should not be forgotten that cryptos are instantly affected by every news in two ways and make sharp price movements. As I mentioned in previous articles, we will invest money here; It should take up very little space in your total savings, which you do not need. In the new year, the regulations of the states for crypto assets will have an impact on prices.
Mutual funds are a good alternative
It seems that the new year will be as active as the last 2 years we left behind. Therefore, those who cannot follow the current developments closely and do not have the time or knowledge to make a rapid change in their investment position may prefer mutual funds managed by professionals. In fact, the fund market has more opportunities than in the past. You can receive funds from other institutions through TEFAS. There are also funds that invest in the shares of global companies operating in popular sectors such as technology, health and green energy
Continuing the stock-based movements in the stock market!
Inflation expectations of the market for 2023 are concentrated in the range of 20-25 percent. In times of high inflation, the stock market can provide serious gains to its investors. However, this does not mean that it applies to all company shares on the stock exchange. In particular, stocks that continue to grow and have high dividend yields provide more returns to their investors in the long run than other investment instruments. Share-based movements are expected to continue in 2023. In particular, the shares of the automotive, white goods and chemical sectors, which are export-oriented, can come to the fore. Although some experts on the other hand draw attention to the risk of shrinkage in domestic demand, retail sector stocks may also maintain their strength in the new year due to mandatory needs.