Say hello to a shocking 2023 that will deliver investors from Dalian to Dallas with relief from 2022 and big, beautiful returns. Expect Chinese and global stocks to boom as a bull market few can foresee delivers stunningly strong returns — 15%, 20%, 25%, maybe more, with China leading the way. Lingering worries on real estate and Covid cases climbing post-reopening — plus U.S. Fed paranoia blind gloomy Western commentators and investors to it. But their gloom is fertile soil for what lies ahead. It tees up positive surprise — relief — which will increasingly wash over markets. Let me explain and detail that
First, disclosure: My 2022 forecast proved mixed. Entering last year, I told you global stocks would grind sideways amid a scary market into the summer before roaring higher, notching double-digit 2022 returns overall. While stocks did strongly rebound late, I didn’t foresee their early weakness morphing into a bear market in the U.S. dollar, driving negative full-year returns. For Chinese stocks, I forecast your painful bear market would end sometime in 2022. While the run up to it wasn’t pleasant, the 38.2% rise since October 31 seemingly proved that true— and looks like a down payment on a bull market set to run into this year.
