What to invest in 2023?

The brutal 2022 has come into the end with all three major indices are down more than 8%. Dow is the relative outperformer, down only 8.78%, while S&P 500 and Nasdaq are down 19.44% and 33.1% respectively. For a long period of time, large cap stocks have been the safe haven; however, this year has been different with mega stocks was down more than the broad market. For instance, well known social media stock META has been down 64.22% for 2022. E-commerce and cloud giant Amazon has been down 49.62%.

Meanwhile, the dividend-paying stocks and funds are held much better, like Vanguard’s High Dividend Yield Index ETF (VYM) ended 2022 down by nearly 3.5% on a price basis — but it was still far ahead of the S&P 500. Names held within VYM include blue-chip stocks like Johnson & Johnson, Exxon Mobil and JPMorgan Chase. The trend is likely to continue in 2023, our AI Strategy Small Cap & Value style will be best fit with the current investment environment.

Even in a tough investment environment for the year, our AI strategy Small Cap &  Value style still provides investors an annualized return of 21.52%, comfortably beating S&P 500 return of 10.36% for the past three years.

Chart 1 Small Cap& Value Style

Within the portfolio, if you would like to know more details on stock picking, there is a perfect example for RUN From Chart 2, you can see that our AI strategy is buying RUN on Nov 7th and selling on Nov 21st making the profit of an impressive 31.33% in just 14 days.

Chart 2 RUN Example