If the long-threatened recession ends up slamming the economy, the stock market likely will be brutalized. But like snowflakes, all stocks are not the same. Some show promise of gaining nicely in a fraught time, as 2023 is shaping up to be, even if others suffer.
On the surface, an argument can be made that 2022’s winners should be 2023’s as well. Higher than normal inflation, persistent Federal Reserve–engineered interest rate hikes, a stubborn pandemic, and international tensions all combined to gut-punch every S&P 500 category last year except for two: Energy (up 64%) and utilities (2%) were the only sectors to show increases.
