①Based on the past performance of undervalued and high-volatility stocks during periods of weakening leading economic indicators, high-volatility stocks may outperform other stock classes this year.
②If the dollar continues to weaken against other currencies, emerging market stocks show the potential to become outperformers.
③Mid-cap stocks may outperform large-cap stocks through 2023, as poor fundamentals appear to be largely priced in as of early January.
④ Based on supportive valuations and the industry group's past performance during periods of weak manufacturing data, materials -- especially metals -- look even better than energy in early 2023.