Happy New Year! I don't see it that way next year.

December 27 2022

Weekly Column with The Contrarian

Happy New Year's Everyone!

I hope everyone enjoyed spending time with loved ones. Since markets are closed today, I thought it would be a great time to see where the money flows and tell you areas that need to be dealt with in the new year.

2023 starts off the year with 7.1% inflation rate. (Food Inflation is a lot high.)

Federal Funds Rate is 4.25% projections this year are for 5.1%

Unemployment rate is 3.7%. Federal Reserve wants it at 5%

Corporations will be writing off losses on inventories in the next earnings season.

Unemployment will accelerate as corporations cut payroll.

Consumer demand for durable goods (big ticket items) will drop further.

The consumer debt will increase faster than last year.

World War III will become more likely in 2023. Just in the last week we have seen 71 Warplanes and 7 Naval ships towards Taiwan and spent the next three days inside Taiwan air space and coastal waters.

North Korea sent 5 Drones into South Korea today. South Korea scrambled a large number of aircraft to shoot down the drones. South Korea even flew a helicopter directly into the path of one of the drones to take it down.

The Japanese Government just approved long range weapons to counter growing threats in the region.

Congress just passed the 2023 Fiscal year Omnibus bill. In the bill the U.S.A.is providing Taiwan with up to $10 Billion in military grant assistance over five years. Congress also reduced the time it takes in the weapons procurement process for Taiwan.

With this as our investment backdrop going into 2023 investing will be tough.

Sectors that should do well are ENERGY, HEALTHCARE, PHARMA,DEFENSE, CONSUMER STABLES,GOLD,FOOD,CASH.

Enjoy your New Year's and remember to follow the money.

Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.