While the stock market is still under pressure, a potential rebound is expected in 2023. Pia Haak, chief investment officer at Swedbank Robur, Sweden's biggest fund manager, said, "We will have better visibility coming into 2023, and this will hopefully help markets." Moreover, according to Refinitiv IBES, consensus estimates project S&P 500 earnings to rise 4.4% in 2023.
On the other hand, value stocks have significantly outperformed growth stocks in 2022, and the momentum is slated to persist in 2023. Investors' interest in value stocks is evident from the Vanguard Russell 1000 Value ETF's (VONV) 10.1% returns over the past three months.
