2022 was the year the major war in Europe began. War in Ukraine has been a determining factor in many sectors, especially in energy. Energy crisis in Europe, an inflation battle in the US, and we have strong prerequisites for a full-blown recession in 2023. Despite these factors, there are still companies to look for. In this article, we will list the top stocks and currencies that have the potential to breakout in 2023, so read carefully.
Which companies will benefit during the recession?
Before we form any type of opinion about which stocks to buy, let’s first discuss which sectors and companies will stay firm and stable during the recession and which sectors will even rise during these crisis times. No matter the crisis and hardships there are few things people will need. These include consumer goods, health care, utilities, cybersecurity, and dividend stocks. Since there is an energy crisis in Europe, any tech startup to solve battery, hydrogen or any other global challenges will rise in price. So, the day you see anyone inventing a new battery that was successfully tested it is a good idea to look at its stock price and buy some. So the consumer goods and healthcare companies are not going to get much hit during 2023.
Top stocks to look to buy in 2023
Make sure to add all of these stocks to your watchlist and further research their price action and dividends amount.
Speaking about food and consumer goods, McDonald’s (MCD), Coca-Cola (KO), and Pepsico Inc (PEP) are good stocks to look at in 2023.
Costco Wholesale Corporation (COST) is a great company that pays dividends.
Palo Alto Networks Inc. (PANW) really interesting cybersecurity company. Cybersecurity will thrive despite the recession since it is always relevant in today’s age.
Higher interest rates and higher bond rates definitely gonna benefit Bank of America Corp (BAC), it sits around $30 and pays 2.65% dividends.
DIAGEO PLC (DEO) is an alcohol company, people are gonna drink more during a recession. It doesn’t sound good but still a stock to consider.
Currencies and cryptocurrencies to look to in 2023
If there is one currency that looks strong despite all the inflation and global crisis is USD. There is a reason behind it, the US Fed is increasing interest rates and decreasing inflation which strengthens the dollar against other currencies. This tendency is amplified further as many fragile economies try to pay debts and other expenses by printing more money, further destroying their currency value.
So, USD is a top favorite for 2023. If the war ends soon then Euro too could go up in value, so keep in mind this little detail.
As for cryptocurrencies, there is not much optimistic news. Bitcoin is in a sustained downtrend and since interest rates hike continue it is unlikely that it will rise in price soon. Because investors don’t have cheap money to buy cryptos. But despite this, if regulations are Bitcoin-friendly and big companies start to save Bitcoin as Gold or any other commodity, a BTC price jump could occur. But first, it is more likely that we see the 10k mark for Bitcoin. Exercise caution with cryptos and don’t invest money you can’t afford to lose.
Some cryptos are undervalued right now and offer great utility and products. These are the top picks for cryptos in 2023: Polygon, ICP, cake, and ADA(Cardano).
Ada (Cardano) development started in 2015 led by Ethereum’s co-founder this project has a very promising future. It is a decentralized platform just like other cryptos in the list and has good recognition. Ada brings security and sustainability to decentralized applications and systems.
Polygon is a powerful blockchain that aims to create a multi-chain ecosystem compatible with the Ethereum network. It enables blockchain networks to connect and scale.
ICP or Internet Computer aims for full end-to-end decentralization by becoming a “world computer” replacing the need for clouds and IT.
Pancakeswap’s native Cake token is of great value. It dropped hard in price and is the most used decentralized platform. It is an exchange to swap tokens between each other.