A Bull Market Is Coming: Here's a Genius Move in 2023

Last year, the S&P 500 produced a negative return of 19%, its worst yearly performance since 2008. A market boosted by loose monetary policy changed direction when the

Federal Reserve started tightening it in response to soaring inflation.  After the market has a down year, as it did in 2022, many investors wonder what the new year will

bring. It's best to remain optimistic. With this in mind, here's a genius move to make as we look at 2023.  Where are the bulls?  With inflation, as measured by the

Consumer Price Index, showing signs of cooling down, many market spectators are wondering when the central bank will pause its rate hikes and even reverse course. The hope is that

this will happen sometime in 2023, which would be a boon for stocks.  Lower interest rates mean lower borrowing costs for consumers and businesses, which is viewed as a

positive for economic growth and corporate earnings. Furthermore, lower rates make investing in bonds less attractive, pushing capital to equities in order to achieve better

returns. These trends could push stock prices higher.   This setup paves the way for a potential bull market, or at least a 20% rise, for the stock market in 2023. The

S&P 500 is up 11% over the past three months and over 3% so far this year (as of this writing), which could signal that it is already starting its march higher. And this could

present investors with an opportunity.