‘Manna from heaven’ inflation and ‘a world that does not end’. A leading strategist offers insights on how to invest in a better future.

Naturally, against this backdrop, it’s hard to blame investors or strategists for being cautious heading into 2023. Wall Street is largely aiming for a modest finish around 4000 next year for the S&P 500 SPX.,
understandable given that strategists missed their forecast marks so widely this year.

But if what you’d like to hear is a bit of optimism, our call of the day by Marko Papic of Clocktower Group brings it to you, along with some investment ideas to fit that theme.

In a long chat of Twitter spaces with green michael of Simplify Asset Management, Papic discusses investor concerns about war, inflation and energy, and suggests looking back in history to when conflict spurred innovation. He sees that coming through energy, life-enhancing technology, and green transportation.

“All of those things will happen at one end, at the other end, there’s bound to be an inflationary decade, but I’m not sure it’s going to reflect the 1970s and the reason it can’t reflect the 1970s is because the context macro on many fronts continues to be deflationary, either due to excess savings, or due to deglobalization, which does not reduce to zero”.

Papic, who forecasts “manna from heaven” inflation of 3% to 5% over the next decade, says another reason inflation won’t fade is the lack of 1970s labor movements.

“We’re still in this Goldilocks scenario” for the long term, and that’s bullish for stocks, he says. “But this is not about the S&P 500. This is about a vision that the world is not ending. And you have to ask yourself what is the premium price of the apocalypse, where should you push?

Papic sees the “structural supercycle of raw materials” intact. China will stay on track, resume housing stimulus, but not go up or down,” he said, noting that additional demand for metals will come from that green transition.

It also makes a bullish case for Europe, and with that German industry, which some may have written off because of the energy struggles Europe is facing. But Papic says the Russian invasion of Ukraine has lit the fire in the country, as he sees investment in LNG infrastructure pick up and power supply normalize by 2024.

One area investors need to be wary of is the looming chip glut.

“Made in China 2025′ set off a six-year race to build microchip factories, which in the short term will be inflationary, but in the medium term will eventually create a global glut” as “4-star generals make the call on where to build chip factories,” he said.

The full interview can be found herewith some highlights from Bloomberg Quant Researcher Steve Hoo.

Read: MarketWatch Stocks 2022: Warren Buffett, Oil, and a 120% Return

The markets

DJIA Shares

SPX

COMP.
They have opened lower, despite some pretty strong futures action earlier, as BX:TMUBMUSD10Y bond yields

BX:TMUBMUSD02Y
go up and the dollar dxy
flattens Gold Prices GC00
they are near the highest levels since June.

CL oil

BRN00
is modestly higher after extreme cold forced Texas refineries to close and news from China that incoming travelers no need to quarantine anymore stimulated some demand hopes. The easing of COVID restrictions also lifted Asian stocks.

For more market updates and practical trading ideas for stocks, options and cryptocurrencies, subscribe to MarketDiem by Investor’s Business Daily.

The buzz

The fallout from a deadly winter storm is expected to continue this week, with actions by Southwest Airlines LUV
more than 4% pre-market after the airline was forced to cancel two-thirds of its flights, and the Fmore than any rival, with more cancellations ahead. the bags are piling up at airportswhile hard-hit western New York waiting for additional snow.

Read: Airlines faced a difficult Christmas of storms and illness, says Cowen: Who fared better and who fared worse?

Tesla TSLA Stock
is falling again before commercialization, as the maker of electric vehicles He is heading towards his longest losing streak in over 4 years. Rival actions NIO NIO
are down more than 4% after the Chinese company cuts your delivery prospects.

The US trade deficit fell sharply in november, according to recent data. Elsewhere, the S&P Case-Shiller showed home prices falling for the fourth month in a rowand a separate gauge, the FHFA Home Price Index, revealed flat prices.

A hacker claims to have data stolen from 400,000,000 Twitter users.

Consumers are shopping less and dining out more, and restaurant spending is up, according to MasterCard SpendingPulse Survey.

The best of the web

Rep.-elect George Santos says he lied about being a college grad and working for two big Wall Street firms.

The Vienna Opera’s survival plan is to take great bets for contemporary work

Another European conflict in the making? Serbian puts troops on high alert over tensions in Kosovo.

Do not recycle, but burn and emit toxic gases in India: Amazon.com shipping packages from the United States.

The graphic

Our chart of the day comes from Callum Thomas, head of research at descending charts. “A lot of people out there tell you to buy and hold dollar cost averaging and focus on the long term. Which is all well and good, but keep in mind that missing decades are actually relatively common… (especially if you sample other countries’ stock markets),” he writes.

the tickers

These were the most searched tickers on MarketWatch as of 6 am ET:

Heart	security name
TSLA	tesla
BOW	AMC Entertainment Holdings Preferred Stock
AMC	AMC Entertainment Holdings
GME	game stop
INFANT	INFANT
AAPL	Apple
MULN	mullen automotive
AMZN	amazon.com
BBBY	bed bath and beyond
NVDA	nvidia

random readings

Christmas at Target? Staff step up for stranded shoppers near Buffalo badly beaten.

Tuesday Night Mega Millions Jackpot Drawing is over half a billion dollars.

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