Investment ideas for Q1 2023

Although food inflation continues to remain high (*1) and war in Eastern Europe has not ended (*2), the December 2022 U.S. CPI drop from 7.1% to 6.5% (*3, *4, *5), suggesting that the U.S. inflation is cooling down.

Given that the U.S. inflation may have cooled down, one may invest in high yield bonds, small cap stocks, consumer discretionary stocks or even collectibles in Q1 2023.

This is because with lower inflation, the interest rate may likely be lower too. A lower interest rate is more likely to encourage more borrowing, which may result in more spending for business like small-cap companies. (e.g. $CarParts.com(PRTS.US)$ , $SIGA Technologies(SIGA.US)$ )

Consumer discretionary companies (e.g. $LVMH Moet Hennessy Louis Vuitton(LVMHF.US)$ , $Lululemon Athletica(LULU.US)$ , $Nike(NKE.US)$ ) may also benefit as more consumers may have more spare money to buy their products and services.

Also, investors may likely go for high yield bonds (e.g. $IS ASIA HYG US(O9P.SG)$ , $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US)$ ) as it is more attractive than normal bonds in the low interest environment.

Collectibles such as investment grade wine, fine art, sports memorabilia and coins can also be bought to hedge against inflation too.

So, which investment will you go after in Q1 2023? Do share by comment and vote below.

We have come to the end of today's topic. Remember to show your support by follow, like, share and comment on this post and as always, don't forget to DYODD (Do your own due diligence) when making any kind of investment.

References:

*1: Food inflation continues to remain high

*2: Ukrainian forces 'withdraw' from Soledar as Putin claims victory

*3: Bitcoin Dips With Stocks After US Report of 6.5% CPI Inflation

*4: Asia markets rise as US inflation data boosts Fed slowdown hopes

*5: US Inflation Cools Again, Putting Fed on Track to Downshift

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