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These data hint investing in 2023 will be even worse

One trader from Twitter thinks there is more economic pain ahead next year, proving this with several on-point charts. Will he be right?

2022 was tough for those who were investing. So many factors have worsened and the outlook for 2023 is not looking any better. While a lot of investors think the worst is behind us, it might actually be in front of us, according to a Twitter thread from HOZ, a well-known trader in the Twitter space. 

Massive decline in consumer spending

People have become extremely cautious in their spending in 2022. High inflation and interest rates made people tighten their belts as the cost of living skyrocketed. In fact, consumer sentiment fell to levels unheard of. Yes, to record lows.

Also read: Jim Cramer heavily criticizes crypto – bottom signal?

Low spending means lower profits for companies, which will grow at a slower pace as a result. In the short term, we may see more pain coming to risk-on assets like stocks and crypto. However, it’s a good sign for those who are willing to withstand the storm and start investing when the sentiment improves.

consumer sentiment

Consumer sentiment chart, source: link

Savings rate close to 2008 levels

Another worrying factor, according to HOZ, is the very low savings rate. He goes further, claiming, “Many individuals and households are currently one payment away from bankruptcy.” The savings rate fell the sharpest in decades as the aforementioned cost of living surged.

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I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

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