2023 Outlook: Stocks Rally but Risks Loom for Tech Giants, Housing and AI
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Investors have enjoyed a stock market run-up into 2023, with the S&P 500 up 16.6% and its real estate sector up 26.5% since late October. However, market sentiment is very bullish, signaling a potential warning.
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Many commodity prices like oil and gold have crashed in 2023 after a volatile year. Gold may have to fall further to justify its current high price.
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Apple, Microsoft, Amazon and other mega-cap tech stocks, the "Magnificent Seven”, have driven most of the S&P 500’s gains this year, though some remain down since end of 2021.
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Artificial intelligence faces challenges in 2024 from copyright issues with companies like the New York Times and from potential misuse spreading false information during elections.
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Mortgage rates falling to around 5% could "unfreeze" the depressed housing market in 2023 according to one analyst.