U.S. market outlook for 2023

Summary:

Investors want to know how much longer the pain will last.

The S&P 500 Index recorded its worst year in more than a decade in 2022, falling 13.1% through November 30. And investors face more market volatility in the year ahead as the macroeconomic environment poses headwinds for many companies.

The American economy, while stronger than most other developed countries, appears headed toward recession, weighed down by high inflation and rising interest rates.

Capital Group economist Jared Franz expects the U.S. economy to contract by about 2% in 2023. That would be worse than the tech and telecom bubble of the early 2000s, but not nearly as bad as the 2008–09 financial crisis. “The important thing to remember,” Franz stresses, “is that recessions are inevitable and necessary to clear out market excesses, and they set the stage for future growth.”

There have been a few bright spots. Consumer spending, a bulwark of the U.S. economy, has been surprisingly strong despite high inflation. In September consumer spending rose 1.7%, exceeding the forecast of 1.4%. Can the American consumer prevent a recession? “Probably not,” says Franz. Nevertheless, it is good to see they are trying.

Whichever way the economic data trends, well-managed companies can compete and flourish in this environment. And patient, selective investors can be rewarded. “We're in a period where the macro environment is particularly important,” says equity portfolio manager Martin Romo. “But the risk is you focus so much on where we are in the cycle that you fail to recognize companies that are thriving and may be catalysts for the next bull market. That’s where I’m spending my time.”

Here are five investment themes to consider in the year ahead.

1. Stocks will likely turn positive before the economy

Every recession is painful in its own way, but one potential bright spot is that they don’t historically last very long. Our analysis of 11 U.S. cycles since 1950 shows that recessions have ranged from two to 18 months, with the average lasting about 10 months.

What’s more, stock markets usually start to recover before a recession ends. Stocks have already led the economy on the way down in this cycle, with nearly all major equity markets entering bear market territory by mid-2022. And if history is a guide, they could rebound about six months before the economy does. U.S. market outlook for 2023_1

“Stocks have tended to anticipate a brighter future before it’s apparent in the data,” Franz says. In other words, investors may be better served by staying invested than trying to time the rebound. The benefits of capturing a full market recovery can be powerful. In all cycles since 1950, bull markets had an average return of 265%, compared to a loss of 33% for bear markets.

The strongest gains have often occurred immediately after a bottom. Therefore, waiting on the sidelines for an economic turnaround is not a recommended strategy. “When the market turns it will likely happen quickly, and no one will be giving the all-clear signal,” Franz adds.

2. Dividends matter again

For the past decade investors had little reason to pay much attention to dividends. With U.S. tech and consumer companies generating double-digit returns and dominating total market returns, dividends appeared downright boring.

Today boring is beautiful. “With rates rising and the economy slowing, I am finding many opportunities to invest in solid dividend payers,” says Diana Wagner, an equity portfolio manager with Washington Mutual Investors Fund℠. “And dividends are starting to account for a greater percentage of total returns, as they have historically.”

While dividends accounted for a slim 16% of total return for the S&P 500 in the 2010s, historically they have contributed an average 38%. In the inflationary 1970s they climbed to more than 70%. “When you expect growth in the single digits, dividends can give you a head start,” Wagner adds. “They may also offer a measure of downside protection when volatility rises, but it is essential to understand the sustainability of those dividends.”

Companies that have paid steady and above-market dividends can be found across the financials, energy, materials and health care sectors, among others. UnitedHealth Group, the largest private provider of health benefits to Americans, has grown its dividend and will likely continue to do so even in a tougher economy. “Retail banks, which are in the eye of the storm in terms of exposure to the business cycle, have been cautious heading into the downturn, and I believe fundamentals for select banks are likely to improve in the next year,” Wagner says. “In other words, I believe the dividends are sustainable and have the potential to increase.”

With respect to energy, Wagner believes we are in an energy crisis and expects demand to rise longer term. “Many energy companies today are showing a commitment to dividends,” she adds. For example, major exploration and production company ConocoPhillips recently disclosed it intends to increase buybacks and dividends.

3. Look for new market leadership to emerge

New market leadership often emerges at the end of a bear market. With the cost of capital soaring, companies with strong, reliable cash flows are favorably positioned to lead the next recovery.

Consider the health care sector, which features innovative pharmaceutical companies that are well capitalized and hold pricing power. Select drug makers can use near-term profitability to fund acquisitions and other growth strategies. That’s especially important when rising rates may limit a company’s ability to fuel their growth with debt. U.S. market outlook for 2023_3

“I don’t know for certain that the health care sector will lead the next bull market,” Wagner explains. “But the best managed of these companies could emerge as market leaders.”

Recent investments in drug discovery are resulting in new ways to tackle major problems like obesity. By 2030 it is estimated that over one billion people worldwide will suffer from obesity, which is linked to cardiovascular disease, diabetes and kidney failure. Companies like Eli Lilly have invested heavily in therapies with the potential to reduce a patient’s body weight by as much as 20% to 25%.

“We have entered a golden age of drug development that may vastly improve quality of life for people. This is an exciting time to invest in health care. Few drugs will achieve blockbuster success, however, so selective investing is crucial.”

4. Growth investing may depend on earnings

Growth stocks had a rough year in 2022, which caused many investors to rotate from growth to value. But that may be the wrong way to think about it, according to Romo, an equity portfolio manager for The Growth Fund of America. “Growth investing is not dead,” Romo says, “but in today’s reality, investors need to think differently about growth.”

For the past decade the market was dominated by fast-growing tech and consumer stocks whose businesses often depended on the low cost of capital. But high inflation and rising rates are forcing investors to take a second look at valuations.

Today, growth has been repriced due to the higher cost of capital. “Successful growth investing may depend less on multiple expansion and more on earnings growth. In this new environment investors will want to focus more on companies with reasonable, understandable valuations on near-term earnings and cash flow,” Romo adds.

“Well established tech giants with visible cash flows from legacy software offerings, for example, coupled with a faster growing offering like a cloud platform, could be among the leaders of the next bull market. “But going forward, investors will focus more on profitability, and they will be less tolerant of fast-growing companies with little to no earnings growth.”

5. Prepare for a potential industrial renaissance

In addition to health care and technology, new growth leadership could emerge from unexpected areas, like capital equipment companies. Look for a capital investment super-cycle to spark an industrial rebirth as reshoring supply chains, grid modernization and investments in renewable energy drive demand for capital equipment spending.

Years of globalization have led to underinvestment in machinery, plants and other capital projects. “You have an aging factory footprint behind the manufacturing sectors of most developed markets,” says Gigi Pardasani, an equity investment analyst who covers U.S. large-cap industrials. U.S. market outlook for 2023_4

In addition, the transition to renewable energy and greater energy security is generating opportunities for companies that invest aggressively.

“We recently had an interesting discussion about the Inflation Reduction Act, which provides billions of dollars for investment in renewable energy infrastructure,” says equity portfolio manager Jody Jonsson. “I think this will lead to a renaissance for traditional industrial companies who are supplying the renewable industry or are helping other companies become more energy independent, whether that’s through the development of smart buildings, power management, smart grids or battery technology.”

This billions of dollars in spending also reflects revenue growth potential for capital equipment leaders such as Rockwell Automation; battery and energy storage developers like Lockheed Martin and Tesla; and equipment providers to the energy and mining industries like Caterpillar and Baker Hughes.

“This investment cycle can have broader benefits for U.S. manufacturing as significantly lower energy costs over the long term can give American manufacturers a competitive edge,” notes Pardasani. “I can see ‘Made in the USA’ becoming a byword for growth again.”

Source：Capitalgroup

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You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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Glendon

U.S. oil production, which includes crude oil and condensate, reached 11.2 million barrels per day (b/d) in December 2020, and U.S. natural gas production (gross withdrawals) reached 112.6 billion cubic feet per day (Bcf/d) in December 2020. U.S. oil production and natural gas production (gross withdrawals) both increased in 2021; oil production reached 11.6 million b/d, and natural gas natural gas production (gross withdrawals) reached 118.7 Bcf/d in December 2021.1 U.S. crude oil and natural gas productionincreased in 2021 because of higher demand and increased rig counts.

The number of producing wells in the United States reached a high of just over 1 million (1,031,183) wells in 2014 and declined to just under 1 million (916,934) wells in 2021—mostly because of lower oil prices and less rig activity (Figure 1). The increase in the share of horizontal wells during the past decade from 5.4% to 18.1% (2011–21) shows the impact of technological change on well type (Figure 2). Since 2013, more than half of U.S. oil (Figure 3) and natural gas (Figure 4) production comes from wells that produce between 100 barrels of oil equivalent per day (BOE/d) and 3,200 BOE/d. In terms the number of wells, the share of U.S. oil and natural gas wells producing less than 15 BOE/d has remained steady at about 80% from 2000 through 2021 (Figure 1).

The Distribution of U.S. Oil and Natural Gas Wells by Production Rate_1

The Distribution of U.S. Oil and Natural Gas Wells by Production Rate_2

The Distribution of U.S. Oil and Natural Gas Wells by Production Rate_3

The Distribution of U.S. Oil and Natural Gas Wells by Production Rate_4

Source：EIA

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Ukadike Micheal

Elevated inflation has weighed down global financial markets and remains a key variable for investors. Recently, equity markets rallied strongly after inflation data for October 2022 showed that prices fell for the fourth consecutive month and services inflation, which had been steadily increasing, appeared to be peaking.

The cost of goods collectively—which includes food, energy, and other commodities—has declined consistently since the beginning of the year. The rapid improvement in supply chains since April has helped alleviate price pressures, and forward-looking indicators show that the downward trend is likely to continue (Figure 1).

Goods Inflation Should Continue to Ease

(Fig. 1) Supply chains have improved significantly, while commodity prices remain below peak levels. The 2023 Inflation Outlook_1

Meanwhile, commodity prices remain well below the inflated levels reached early this year and are expected to remain somewhat anchored amid fading demand due to weakening economic activity. Robust natural gas storage levels in Europe, supported by a mild winter thus far, and rising U.S. oil production have also eased energy supply concerns.

Rising costs within the services segment of inflation are a crucial area of focus for the Federal Reserve because services inflation is “stickier” and tends to persist for longer. On the positive side, shelter inflation—which is a large component of services inflation—is expected to fall significantly over the next 12 months (Figure 2). Unfortunately, the outlook for other services components is less promising as wage inflation remains elevated, driven up by sustained labor shortages.

Shelter Inflation is Expected to Recede

(Fig. 2) Forward-looking indicators suggest a sharp pullback in housing costs within 12 months. The 2023 Inflation Outlook_2

Overall, the costs of both goods and services are likely to decline considerably by the middle of next year, and it is, therefore, reasonable to expect the Fed to slow its pace of—or even pause—rate hikes. However, we believe that an interest rate cut is unlikely in 2023 if labor costs remain elevated and inflation settles well above the Fed’s 2% target.

Source：T.Roweprice

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Thomas

Cryptocurrency

The waning days of 2022 may be US crypto traders’ last chance to take advantage of a tax loophole that doesn’t exist in traditional finance: wash trading.

At least if certain politicians have their way.

In a Wednesday SEC filing, MicroStrategy said it had sold 704 bitcoins, before repurchasing 810 bitcoins two days later — for effectively the same price. A parallel trade of regulated securities would be an illegal wash trade: selling and repurchasing the same shares within a defined period in an attempt to realize a loss and pocket a tax benefit.

“Currently, the wash sale trading rule does not apply to crypto assets, and it is simply smart financial planning to do tax loss harvesting,” Kell Canty, CEO of Ledgible said. “This is exactly what Microstrategy has done here.”

When used to its full potential, tax loss harvesting gives traders the opportunity to offset ordinary income in a given year or in the future, according to Andrew Perlin, an accountant with TokenTax.

“If your capital losses for the year exceed your capital gains, you can use up to $3,000 of losses per year ($1,500 if you are married and filing separately) to offset regular income after reducing investment gain,” Perlin said in a recent blog post.

Offsetting capital gains with tax loss harvesting

Tax loss harvesting postpones tax obligations — it does not cancel those obligations. The idea for traders is that through tax-loss harvesting, investors can put more money into growing their portfolios, Perlin said. And realizing losses, in part, may reduce tax owed on capital gains.

“This is how the logic works: By the time you pay the taxes you postponed through tax-loss harvesting, your portfolio would theoretically have generated significantly more than the tax amount you owe,” Perlin said. “In this scenario, you would end up with a higher dollar amount in the long run.”

As long as bitcoin and other cryptocurrencies continue to not be classified as securities, MicroStrategy’s move is technically legal, according to Arthur Teller, TokenTax’s chief operating officer.

The Biden administration attempted to put an end to wash trading in crypto through an amendment to the Build Back Better Act, but the effort did not pass. The amendment would have made wash trading currencies, commodities and digital assets illegal, per the draft’s text.

Even with a legal bitcoin wash trade, there is one concern taxpayers looking to pocket a loss benefit should keep an eye out for, Teller said: the economic substance doctrine.

“If a transaction does not appear to have a legitimate business purpose or lacks economic substance, then the tax benefits associated with that transaction are disallowed,” he said. “Put another way, even though the wash sale rules don’t apply to crypto, these types of transactions may still result in disallowed losses.”

Article Source： CRYPTONEWS

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Alex

Forex

The relentless rally by the U.S. Dollar in 2022 devastated foreign currencies, chewed up multi-national corporate profits and handed investors one of the best trending trades of the year. And even though the greenback has struggled since late September, recession concerns may keep it elevated in 2023.

At its peak on September 28, the U.S. Dollar stood at its highest level against a basket of major currencies in nearly twenty-years after rising about 20%. However, those gains have been roughly cut in half as investors bet the Federal Reserve is edging closer to slowing the pace of its rate hikes that helped fuel the greenback’s earlier gains.

US Dollar Index Forecast 2023 – Fed Rate Hikes, Recession-Driven Safe-Haven Buying to Provide Support_1

Weekly US Dollar Index

Rising Yields, Safe-Haven Buying Back the Buck

The Federal Reserve’s aggressive rate hike campaign led to higher U.S. Treasury yields, which proved to be the catalyst for most of the dollar’s strength. However, other factors played an important role in boosting the buck.

Investors also gravitated to the dollar – a popular safe-haven during uncertain times – to shelter from heightened market volatility, fueled by surging global inflation, soaring energy prices and Russia’s invasion of Ukraine.

Another factor that contributed to the U.S. Dollar’s appeal was the comparative strength of the U.S. economy during a time when an energy crisis in Europe hammered assets and brought the continent to the brink of recession. Additionally, China’s economy struggled to gain traction due to stringent COVID-19 restrictions.

Dollar Remains on Pace to Post Best Performance in Eight Years

Even with the fourth quarter sell-off, the U.S. Dollar remains on track to post its best year since 2014. Although predictions of an easing of Fed tightening started the retreat, some blamed fund managers who called the long-dollar trade the “Most Crowded Trade”. In other words, they sold the dollar because they thought it was fundamentally overvalued and technically overbought.

Nonetheless, a recent Reuters poll of 66 foreign exchange strategists suggested the dollar will trade at its current level around a year from now, with many expecting global central bank policy tightening to hurt growth and boost the greenback’s safe-haven appeal once again.

Why the Dollar Matters to the Global Economy

Predicting the direction of the dollar is important across the entire financial market spectrum. It trajectory sets the tone in everything from corporate earnings to the prices of raw materials such as oil and gold.

Specifically, a stronger U.S. Dollar makes U.S. exporters’ products less competitive aboard while hurting U.S. multinationals who get paid in foreign currencies that they need to exchange into more expensive dollars. This exchange risk hurts corporate earnings.

The S&P 500’s foreign exposure stands at around 30%, according to Bank of America, with the technology and materials sectors most vulnerable. Furthermore, the dollar’s rally clipped about 8% from S&P earnings in 2022, according to Tom Lee, head of research at Fundstrat Global Advisors.

The global economy also struggles when the dollar is too strong. A stronger U.S. currency pressures the price of crude oil and other dollar-denominated commodities by making them more expensive to foreign buyers, while also making it more expensive for foreign companies and governments that have borrowed in dollars to service their debt, according to Reuters.

And while a strong greenback can tamp down U.S. consumer prices, it also pushes down the currencies of other countries helping exacerbate inflation around the globe. On average, the estimated pass-through of a 10% dollar appreciation into inflation is 1%, the International Monetary Fund estimated in October.

2023 Outlook

Investors will be honing in on consumer inflation in early 2023. This is because the dollar’s decline from its 2022 top began to accelerate when data started showing that consumer prices fell less than expected in October. That news helped fuel a 5% drop in the greenback against a basket of major currencies in November, its biggest monthly decline since 2010.

Sentiment also shifted in late 2022, when speculative futures traders swung into a net short position on the U.S. Dollar for the first time in 16 months in November. That being said, we are expecting the market to start the new year with a net short dollar position.

Fed Will Be Key to Dollar’s Direction

The ability to sustain the dollar’s late year bearish tone will depend on the Fed’s ability to contain inflation enough to eventually ease monetary policy.

While we don’t think the dollar will return to its 2022 high next year, we think it will continue to receive enough support to prevent a complete collapse.

One reason why the dollar could stabilize early in the year is because of the Fed’s hawkish tone at its December 14 meeting. The dollar was falling into the meeting as traders priced in a softer tone from policymakers. However, the greenback hit a short-term bottom at 102.875 after Fed policymakers said they expect to raise U.S. interest rates further, and keep them high for longer, than they had anticipated.

Furthermore, they said that squashing high inflation will likely take a bigger toll on the economy and the job market than they had hoped.

And though Fed Chair Jerome Powell said that the Fed’s latest policymaker projections don’t necessarily mean the economy will fall into a recession, he did suggest the risk is worth it, and the Fed has no plans to cut rates to cushion the blow.

Two Major Price Swings in 2023

We believe there are going to be two major moves in the U.S. Dollar in 2023. We are expecting the first move to be to the upside with the greenback supported by the Fed’s rate hikes and a recession.

Higher rates will continue to make the dollar an attractive asset, while a recession will increase its appeal as a safe-haven currency.

After the mild recession, the Fed is likely to hold rates steady or even talk about a rate hike. That would put downside pressure on the dollar index.

Sources:FXEMPIRE

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Devin

Forex

EUR/USD Forecast :Signs of Improvement Start to Appear_1

For the second time this week the EUR/USD triggered a bullish breakout of the inside week from last week, as the pair advanced above 1.0659. This is bullish price behavior.

EUR/USD Forecast :Signs of Improvement Start to Appear_2

Higher Price Targets

If price keeps rising from here, the EUR/USD will next contend with its recent trend high at 1.0736. A little above there is a target zone from around 1.0793 to 1.0787. That zone consists of previous price structure around 1.0787, and the 127.2% Fibonacci extension of the most recent pullback at 1.0793.

Bullish Signs Increasing

Next, for signs of continued strengthening, watch for a daily close on Thursday above Wednesday’s high of 1.0674. An initial bullish signal triggered earlier in the day on the daily time frame as the pair traded above Wednesday’s high. Nevertheless, a daily close above prior daily highs is going to be important in determining the sustainability of a bullish advance. If that occurs, it would be the highest daily close of the past 10 days and another bullish piece of evidence.

EUR/USD Forecast :Signs of Improvement Start to Appear_3

There are a few bullish trend indications for the EUR/USD to be aware of. The pair is above both its 200-Day EMA and 21-Day EMA. The 21-Day EMA has acted as clear trend support for the past two weeks and previously as the uptrend moved off the bottom. Therefore, the 21-Day is an important trend indicator to watch going forward. Further, the EUR/USD rose above the 55-Week EMA three weeks ago and it has closed above it since then, another sign of strength.

Caution Still Warranted

Although it is starting to look more likely that the EUR/USD wants to go higher, so far it continues to evolve an expanding triangle consolidation pattern, where the lines at the top and bottom borders of the pattern are angled away from each other. This can best be seen on an intraday chart like the 2-hour chart below.

EUR/USD Forecast :Signs of Improvement Start to Appear_4

In general, an expanding triangle formed near the top of a trend is considered bearish. However, given the developments highlighted above it may fail in this case and breakout to the upside instead. So far, there are early signs of this happening as noted above.

Regardless, until there is a daily close above the high of the past nine days or above last week’s high, as of now, further development of the expanding triangle is possible.

Article Source： FXEMPIRE

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Samantha Luan

Cryptocurrency

Bitcoin and Ethereum are not part of the surprising list of five best and worst-performing cryptocurrencies for 2022.

Collect this article as an NFT

Cointelegraph looks back on the best and worst-performing cryptocurrencies of 2022 among the top 100 assets by market capitalization. We used the highest and the lowest year-to-date (YTD) returns through the close of Dec. 25, 2022.

Overall, Cryptoindex.com 100 (CIX100), an index that tracks the 100 best-performing cryptocurrencies, fell nearly 68% YTD, suggesting most top coins underperformed in 2022.

CIX100 weekly price chart. Source: TradingView

Stablecoins are naturally omitted from the list below. Similarly, coins tracking the value of gold and similar mainstream assets have also been ignored.

Instead, the coins mentioned below include decentralized currencies, smart contract tokens, exchange tokens and others.

Top five crypto of 2022

1. GMX (GMX)

YTD return: 111%
Sector: Decentralized exchange
Market Cap: $379.4 million

GMX acts as a utility and a governance token within the GMX decentralized exchange (DEX) ecosystem and is the best-performing digital asset among the top 100 coins (excluding stablecoins).

GMX’s price uptrend mostly picked its cues from the collapse of FTX, a centralized exchange, and its listing on popular trading platforms — including Binance and Huobi Global — across 2022. In addition, the token rallied impressively in late November after its platform briefly surpassed its top DEX rival, Uniwap, in daily trading fees.

GMX price performance YTD. Source: CoinMarketCap

2. Trust Wallet Token (TWT)

YTD return: 92%
Sector: Payment platform
Market Cap: $570 million

Trust Wallet Token (TWT) serves as a utility and a governance token within the Trust Wallet ecosystem. The token moved lower in tandem with the rest of the crypto market, mostly in 2022, but like GMX, its upside momentum increased amid the collapse of the FTX exchange in November.

TWT/USD daily price chart. Source: TradingView

As Cointelegraph reported, the FTX’s collapse boosted mistrust for centralized exchanges, which may have prompted investors to move their funds to self-custody wallets like Trust Wallet. The speculation could have played a major role in boosting TWT’s valuation.

3. Unus Sed Leo (LEO)

YTD return: -3.5%
Sector: Centralized exchange
Market Cap: $3.44 billion

Unus Sed Leo (LEO) is native to the iFinex ecosystem. The token suffered losses in 2022, but at -3.5%, they were little compared to most top coins, including Bitcoin (BTC) and Ether (ETH), which lost over 65% in the same period.

LEO/USD daily price chart. Source: TradingView

One of the reasons why LEO outperformed most top-ranking assets could be iFinex’s pledge. Notably, the firm declared at the time of LEO’s private sale in 2018 that it would employ 27% of its revenue to buy back the tokens until the entire supply of 985.24 million units was removed from circulation.

IFinex also said it would use the funds it lost during the August 2016 Bitfinex hack to purchase LEO tokens. That explains why LEO rallied by more than 100% at the start of the year, given the uptrend came after the United States Department of Justice recovered 94,000 BTC from Bitfinex hackers.

The rally took LEO’s price to a YTD high of $8.15 in February. However, the token has dropped 55% since, though still remaining one of the best performers in 2022.

4. OKB (OKB)

YTD return: -19%
Sector: Centralized exchange
Market Cap: $1.38 billion

OKB is the native token of the OKX exchange. It provides users discounts on trading fees, access to OKX's initial exchange offering (IEO) platform, and voting rights for tokens to be listed on the exchange.

OKB trended synchronously with the broader crypto market in 2022, including its 150% recovery after bottoming out at around $9.50 in June. The token’s bullish retracement occurred despite the absence of a major market-moving event, suggesting it had been mostly speculative.

OKB/USD daily price chart. Source: TradingView

Overall, OKB’s volatile recovery helped it limit its YTD losses compared to most top-ranking assets.

5. The Open Network (TON)

YTD return: -33.5%
Sector: Smart contracts
Market Cap: $3.52 billion

The Open Network is a layer-1 blockchain ecosystem developed by the Telegram founders Nikolai Durov and Pavel Durov. Its native token, TON, trended downward in line with other top crypto assets during most of 2022 but recovered impressively ahead of the year’s close.

TON/USD price performance YTD. Source: CoinMarketCap

TON’s recovery period coincided with back-to-back optimistic news. For instance, in October, Telegram announced that it would employ the Open Network to auction usernames. Similarly, the Open Network built a bot the next month that allows Telegrams users to trade cryptocurrencies in-app.

Nonetheless, TON failed to recoup all of its losses, still down 33.5% YTD at $2.36.

Worst five cryptos of 2022

1. Terra (LUNA)

YTD performance: -99.99%
Sector: Smart contracts
Market Cap: $604 million

Terra (LUNA) became a debacle for the cryptocurrency sector after its market valuation crashed by 99.99% in May. The unraveling started with the implosion of Terra’s algorithmic stablecoin TerraUSD (UST), marking one of the biggest busts in the crypto industry’s history.

LUNA/USD daily price chart. Source: TradingView

Terra’s implosion prompted its founder Do Kwon to suggest a fork to revive the project. Eventually, Terra underwent a chain split, with the old chain existing as Terra Classic and the new chain as Terra 2.0.

Luna Classic (LUNC) jumped nearly 100% after its launch in late May 2022 while LUNA (LUNA2) dropped around 40% in the same period.

2. FTX Token (FTT)

YTD performance: -98%
Sector: Centralized exchange
Market Cap: $307 million

FTX Token (FTT) served as a native token to FTX, which collapsed after facing a liquidity crisis in November.

FTT/USD daily price chart. Source: TradingView

The token continues to trade across several exchanges but accompanies poor liquidity and volume. It is technically “dead” given the defunct status of FTX.

3. Solana (SOL)

YTD performance: -93.35%
Sector: Smart contracts
Market Cap: $4.11 billion

Solana (SOL), a layer-1 blockchain protocol, crashed 93.35% YTD due to a sequence of bad news all across 2022. That includes six network outages in the year, a $200 million hack on a Solana-based wallet and Solana’s association with FTX.

SOL/USD daily price chart. Source: TradingView

More bad coverage appeared in the form of accusations that Solana is not as decentralized as it claims to be, resulting in SOL being one of the worst-performers of 2022.

4. Axie Infinity (AXS)

YTD performance: -93%
Sector: Gaming/metaverse
Market Cap: $775 million

Axie Infinity Shard (AXS) serves primarily as the governance token for Axie Infinity, a play-to-earn (P2E) gaming ecosystem. It also acts as a legal tender in the Axie Infinity marketplace, where in-game nonfungible tokens (NFT) can be purchased.

The AXS market has consistently trended lower in 2022 due to underwhelming players turnout (which lowers the demand for tokens), a $650 million hack concerning Axie Infinity’s blockchain Ronin in late March and fears surrounding the unlocking of 8% of supply in October.

AXS/USD daily price chart. Source: TradingView

AXS is down approximately 93% YTD, becoming one of the worst-performing assets in the current bear market.

5. The Sandbox (SAND)

YTD performance: -92.50%
Sector: Gaming/metaverse
Market Cap: $690 million

Like Axie Infinity, The Sandbox is a virtual platform where users can create, own and monetize their gaming skills using NFTs and The Sandbox (SAND), the platform’s utility token. But, despite initial success, the platform now has less than 500 unique users, according to data from DappRadar.

The lower turnout has affected SAND’s demand across spot exchanges, which, in turn, has pushed its price down 93.50% YTD, as shown below. Other factors behind the declining interest include a general lack of demand for riskier assets in a higher interest rate environment.

SAND/USD daily price chart. Source: TradingView

Other tokens that fell more than 90% YTD are Fantom (FTM), Avalanche (AVAX), Algorand (ALGO), Decentraland (MANA), BitTorrent (BTT) and others.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Article Source： COINTELEGRAPH

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U.S. market outlook for 2023

1. Stocks will likely turn positive before the economy

2. Dividends matter again

3. Look for new market leadership to emerge

4. Growth investing may depend on earnings

5. Prepare for a potential industrial renaissance

Source：Capitalgroup

The Distribution of U.S. Oil and Natural Gas Wells by Production Rate

Source：EIA

The 2023 Inflation Outlook

Source：T.Roweprice

MicroStrategy’s Bitcoin Wash Trade is Still Legal… For Now

Offsetting capital gains with tax loss harvesting

Article Source： CRYPTONEWS

US Dollar Index Forecast 2023 – Fed Rate Hikes, Recession-Driven Safe-Haven Buying to Provide Support

Weekly US Dollar Index

Rising Yields, Safe-Haven Buying Back the Buck

Dollar Remains on Pace to Post Best Performance in Eight Years

Why the Dollar Matters to the Global Economy

2023 Outlook

Fed Will Be Key to Dollar’s Direction

Two Major Price Swings in 2023

Sources:FXEMPIRE

EUR/USD Forecast :Signs of Improvement Start to Appear

Higher Price Targets

Bullish Signs Increasing

Caution Still Warranted

Article Source： FXEMPIRE

Top 5 Crypto Winners and Losers of 2022

Collect this article as an NFT

CIX100 weekly price chart. Source: TradingView

Top five crypto of 2022

GMX price performance YTD. Source: CoinMarketCap

TWT/USD daily price chart. Source: TradingView

LEO/USD daily price chart. Source: TradingView

OKB/USD daily price chart. Source: TradingView

TON/USD price performance YTD. Source: CoinMarketCap

Worst five cryptos of 2022

LUNA/USD daily price chart. Source: TradingView

FTT/USD daily price chart. Source: TradingView

SOL/USD daily price chart. Source: TradingView

AXS/USD daily price chart. Source: TradingView

SAND/USD daily price chart. Source: TradingView

Article Source： COINTELEGRAPH

Risk Disclosure