5 things you shouldn’t buy in 2023

It was a year of contradictions.

Recession drums sound, interest rates rise and the stock market tumbles, but retail sales have grown 6.5% over the past 12 months, dragging cost of living increased 7.1%.

There are many other reasons people should consider cutting back on spending in 2023. Personal savings rate – that is, personal savings as a percentage of disposable income or the portion of income left over after pay taxes and spend money – gain 2.4% in the third quarter from 3.4% in the previous quarter, the Bureau of Economic Analysis said.

There are signs that people are pulling back on certain spending.

That’s the lowest level since the Great Recession and the eighth-lowest quarterly rate on record (since 1947). According to government data, adjusted for inflation, savings are down 88% from their 2020 high and 61% below pre-pandemic levels. The personal savings rate hit 2.4% in November compared with 2.2% in October.

Are people buying stocks during the bear market and/or have they run out of savings during the pandemic? Whatever the reason, more informed investment and spending decisions seem to be the most prudent approach – especially given the uncertain economic outlook for 2023.

There are signs that people have pulled back on certain spending. Although retail sales rose for the year, it fell 0.6 percent month-on-month in November, marking the biggest drop in nearly a year, largely due to weak auto sales.

About those new cars: Total new-vehicle sales for 2022 are expected to hit 13,687,000 units, down 8.4% year-over-year, according to joint forecasts from JD Power and LMC Automotive. MarketWatch reporter Philip van Doorn explain all the reasons why you may want to skip buying a new car in 2023, besides their ever-increasing prices.

So what else should you save your money on in 2023? The MarketWatch writers give their verdict below.


During the pandemic, people love to buy special purpose acquisitions, known as SPACs. In 2021, 613 SPACs are listed on US stock exchanges through initial public offerings, according to SPAC Insider. Last year, there were 248 SPAC IPOs. There have never been more than 100 of these before in a year. There are SPACs involving Donald Trump and Serena Williams. There are many, that name is called Just Another Acquisition Corp.

SPACs exist as a means to bring private companies public and theoretically help these shell companies operate faster and more efficiently. less regulatory burden means of accessing public capital. US Securities and Exchange Commission Investor warning in April last year, the so-called advantages of the SPAC process, such as reduced liability, may not prove solid if brought to trial in court.

The SPACs raised money even though they had no commercial or business activity and tried to use the cash to buy something that already existed. But investors buying SPACs merging with private companies since 2015 have suffered an average loss of 37%, a year after the merger, according to a report. recent research. New issue SPAC and ETF

has slipped 12% this year. The frenzy over SPAC is predictably bankrupt. But if you see one, just stay away from it.

— Nathan Vardi

electronic money

There are two main reasons not to invest in crypto in 2023 and unrelated to the massive drop in the value of most major coins last year, including but not limited to bitcoin

and lanyard
Investors have long been conditioned to buy when prices fall and find value where others are afraid to step in, and then make money when prices rise.

Cryptocurrencies are different because there is no correlation with long held market theories and buying it is more for speculation than for investment. That might sound semantic, but if you look at financial planning as a whole, you see investing as an exercise in risk tolerance — and cryptocurrencies are all risks. ro.

Which leads to another major reason to avoid crypto next year: If you buy it, there’s really no safe way to store it. There is no federal insurance covering exchange errors and little protection against cyber theft for individuals. That leaves you alone, it’s not a good place to spend your money.

—Bad Pinsker

Headset Meta Quest

On the consumer side, if you really like virtual reality, there’s nothing wrong with jumping in Meta Quest Two and New Meta Quest Pro headset introduced in 2022 by Meta Platforms Inc.

The point is, you might feel like you bought a BlackBerry

phones in early 2007. Apple Inc.

is expected to finally show what engineers at the Silicon Valley giant have been cooking up in a multi-year project to jump into. augmented and virtual realityand consumers are expected to at least get a glimpse of Apple’s efforts this year, if not the chance to buy anything the company makes.

Headphones don’t come cheap: Meta speak Earlier this year, it increased the price of the Meta Quest 2 headset by $100 to $399.99 (128GB) and $499.99 (256GB). The introduction of the iPhone 15 years ago changed the way people look at smartphones, and the fact that Apple is expected to jump into the field in 2023 could make anyone shell out for a Meta headset. Quests were all disappointing. desire a new reality.

— Jeremy Owens

stock meme

Struggling companies with business models that to some seem to be dying and/or struggling often don’t do well in the stock market. But in times of pandemic, these companies often have their stocks skyrocketing. What drives them is social sentiment, driven on platforms like Reddit, by a group of retail investors.

There is a video game retailer GameStop
cinema chain AMC
and the Blackberry dinosaur smartphone. AMC recently announced the sale of an additional $110 million in stock, adding to a total that has exceeded $2 billion since the theater chain was caught up in the meme-stock frenzy. CEO Adam Aaron wrote on Twitter that the move has put the company in a “much more abundant cash position.”

GameStop recently reported seventh consecutive quarter loss and reiterate the goal of a profitable return in the near term, but analysts have signaled that many challenges lying in front. During the company’s recent third-quarter conference call, CEO Matt Furlong said that GameStop would be open to exploring repurchase of a strategic or corporate asset for free if they are available “in the right price range”.

Buying meme companies like this works for some in a booming stock market fueled by ultra-low interest rates. But we are currently in a bear market with rising interest rates. Corporate fundamentals are in vogue again. The same goes for investment ideas as weird as cash flow. Most likely, the days of meme stock buying are over.

— Nathan Vardi

Tesla cars

In recent years, Tesla Inc.

has become the best choice for electric vehicles, while other manufacturers struggle to get production running. But in 2023, there will be variety of electric vehicles available, with prices expected to trend downward over the years. Teslas range in price from $46,990 for the Tesla Model 3 to $138,880 for the Tesla Model X Plaid.

With major manufacturers like General Motors Co.
Ford Motor Company
Toyota and Volkswagen Group


jumped into the fray, and young people wanting to be Tesla like Rivian Automotive Inc.
Lucid Corporation

and FIsker Inc.

scheduled to start car productionConsumers will have more choices of electric vehicles.

Meanwhile, Tesla has done little to update the Model 3 since it was introduced in 2017 and has raised prices to a level that CEO Elon Musk admits is “embarrassing” for a company. claims to have mass-market pricing targets. for electric vehicles.

The average price of a new EV is $64,249, while a new petrol car is $48,281. by Liz Najman, a climate scientist and director of research and communications at Recurrent Auto, an electric vehicle research and analysis company focused on the used vehicle market. After years of not having much choice but Tesla for electric cars, 2023 seems to be the year of change.

— Jeremy Owens


Goz News: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably.

Related Articles

Back to top button