$3,000 gold and more outrageous market predictions investors shouldn’t discount.

It all goes with the theme of 2022 – expect the unexpected. Relief from emerging from a crippling pandemic was quickly replaced by the biggest war on European shores in decades, which triggered global inflationary spurts.

What comes next is anyone’s guess and that brings us to our call of the day via Saxo Bank’s annual ‘outrageous predictions’ for 2023.

While some of these sound crazy, note that the Saxo team, led by Chief Investment Officer Steen Jakobsen, has nailed a few crazy prophecies over the past decade. These include: a Brexit prediction in 2015, a 25% drop in the S&P 500 from its 2007 peak in 2008, a tripling of the predicted value of Bitcoin in 2017.

The focus of the 2023 prediction is that “a return to pre-pandemic disinflationary dynamics is impossible because we have entered a world war economy, with all the major powers of the world now jostling to bolster their national security on all fronts; whether in an actual military sense, or due to deep supply chain, energy and even financial insecurities that have been laid bare by the experience of the pandemic and the invasion of the Ukraine by Russia,” says Jakobsen.

As for those predictions, here we go:

• Gold breaks through $2,075 and then soars to $3,000 on unstoppable inflation. “Fed policy tightening and quantitative tightening are causing a new problem in US Treasury markets that forces sneaky new ‘measures’ to contain Treasury market volatility, which effectively amounts to further quantitative easing de facto,” says Saxo. And the end of zero-COVID in China is driving up demand, commodity prices and inflation.

• Widespread price controls to limit official inflation due to war economy mentality. “In 2023, expect wider price and even wage controls, perhaps even something like a new National Price and Income Council being established in the UK and US,” said Saxo. Market fallout? Fuel for Gold’s GC00
  ascend.

• There’s a new reserve asset in town. Countries not allied with the United States are moving away from the United States and the IMF to create an “international clearing union (ICU) and a new reserve asset, called Bancor (currency code KEY)” which borrows from the United States. economist John Maynard Keynes the idea of ​​resisting American power over the international monetary system. Unaligned Central Banks Cut US Dollar Reserves, Treasury Yields Soar, Dollar DXY
  down 25% against a basket of currencies that trade with Bancor.

• Japan pegs USDJPY at 200. Pressure Builds on Already Weak Yen USDJPY
  in 2023 as monetary intervention fails and inflation soars. The government resets the financial system, wipes out all debts, recapitalizes the banks, as trillions of yen return to Japanese shores. But the yen always weakens at the end of the year.

• A 10 trillion dollar project in Manhattan. A team of major technology leaders forms a mega research and development effort for energy infrastructure and breakthrough technologies – the third stone. Companies linked to the project are soaring in an overall weak environment for investing.

• Banning tax havens kills private equity. The OECD is launching a comprehensive ban on the world’s largest tax havens in 2023 and in the US interest tax is deferred when capital gains are transferred to ordinary income. This is a blow to private equity and venture capital – the valuation of publicly traded private equity firms plummets by 50%.

The rest of their predictions are there, like the formation of an EU armed force in 2023 and an “UnBrexit” referendum.

Lily: Why Monday’s stock market rout should be a wake-up call for investors

The steps

DJIA Stocks

SPX

COMP
drift into the red, with Treasury yields BX:TMUBMUSD10Y

BX:TMUBMUSD02Y
stable, the dollar DXY
low and oil CL

BRN00
also down.

For more market updates and actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

The buzz

Stock BioVie BIVI
climbs after the biopharmaceutical company’s positive clinical-stage results on a drug for Parkinson’s disease and Alzheimer’s disease.

NRG Energy NRG
agreed to purchase Vivint Smart Home VVNT
in a $5.2 billion deal. Vivint shares are skyrocketing.

MEI Pharma MEIP
Shares tumble after the drugmaker said it would stop developing the cancer treatment zandelisib outside Japan and announced job cuts. Herbalife shares HLF
are down 10% after a convertible bond issue

Powell Industries POWL
the stock is up 9% after the good results and new orders from the electrical supplier. In Sumo Logic software SUMO
and GitLab shares GTLB
leap on optimistic results and forecasts.

Layoffs that go beyond technology? PepsiCo PEP
reportedly cut hundreds of workers at its North American headquarters.

Toll Brothers TOL Home Builder
will publish the results after the close.

October’s trade deficit jumped 5.4% to $78.2 billion.

The US and EU are reportedly considering new steel and aluminum tariffs for China to tackle carbon emissions.

The best of the web

“Nothing to cheer about.” An empty, lonely and cold Ukrainian city once occupied.

Morocco’s World Cup squad relies on its parents’ secret weapon in the stands.

Why human composting could be the next big thing.

Table

As the holidays approach, consumers are turning to savings and credit, says a team of Jefferies analysts led by Corey Tarlowe. “The savings rate continues to decline and credit card balances are up +15% YoY. We believe these trends indicate that the consumer is stretched.

In this context, they like Costco COST,
Dollar General DG,
Target TGT
and Walmart WMT.

Stock tickers

Here are the most searched tickers on MarketWatch as of 6 a.m.:

Teleprinter	Security Name
TSLA	You’re here
EMG	GameStop
CMA	AMC Entertainment
NIO	NIO
BBBY	Bed bath and beyond
AAPL	Apple
MONKEY	AMC Entertainment Holdings Preferred Stock
MSOC	Cosmos
AMZN	Amazon.co.uk
MULN	Mullen Automotive

Random plays

Tributes are pouring in after ‘Cheers’ star Kirstie Alley passed away at 71.

Happy 190th birthday to the oldest turtle in the world.

A green Grinchy dog ​​for Christmas? Not everyone’s heart has grown three sizes.

Need to Know starts early and updates until the opening bell, but register here to receive it once in your e-mail box. The email version will be sent around 7:30 a.m. EST.

Listen to the Best New Money Ideas Podcast with MarketWatch journalist Charles Passy and economist Stephanie Kelton