Finder makes money from featured partners, but editorial opinions are our own.

Back to a bull market – expert analyst’s predictions for the rest of 2023

Posted:
News
Bull_Market_Canva_Updated_1800x1000

We're in the middle of a bull market. But what does that mean for everyday investors? Josh Gilbert of eToro shares his insights.

eToro Share Trading Platform Finder Award Gold WinnereToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. See PDS and TMD.

Halfway through 2023, it seems that the US has shaken off the bear and found itself back in a bull market.

A bull market is generally characterised by a rise in asset prices over an extended period – usually a few months. It also tends to be associated with investor confidence.

From an investor perspective, some trepidation about buying during a market high is understandable. But broadly, a bull market tends to raise confidence about larger returns over the long term.

We spoke to Josh Gilbert, market analyst at eToro, to get his insights into how investors can best benefit during a bull market.

How investors can leverage a bull market

Gilbert sees diversification as one of the key ways that investors can benefit during a bull market. Branching out and looking for ways to offset risks in one area of the portfolio is key.

"Diversification has been really prominent during 2023," he says. "European and US stock market performance shows why it is important to invest globally, not just locally. Time in the market outweighs timing the market."

Tools like eToro's demo account also serve as a means for looking at new ways to diversify, too.

It's a way to test out strategies before you put them into practice. This way, you can look at the market data and refine your plan without putting your money at risk.

Options like eToro Smart Portfolios and the AussieEconomy portfolio also provide investors with a way to start diversifying, via a curated selection of stocks and assets.

bonus icon

Start trading with eToro


At the moment, eToro is offering new members the chance to get started with a demo trading account. When you sign up, you'll be able to develop your trading skills and learn from expert traders throughout your trading journey.

💲Get started with a $100K demo account

Discover how you can get your investments to grow, without the risk of practicing with real cash. With your virtual account pegged to real-world values, you can measure your results with accuracy and easily keep track of your gains and losses.

📈 Practice trading strategies

Get a feel for your risk appetite, style of investment and preferred industries. Test your strategy across a wide range of assets, including stocks, ETFs and crypto. Learn from trading experts and apply their tips to create better outcomes.

🪙 Use your results as a springboard for real-world results

eToro's demo accounts use the same interface as its regular trading platform. So when you're ready to get started trading for real, you'll already have the knowledge you need to navigate the interface and apply your strategies.

Asset classes to watch in the second half of 2023

With diversification in mind, where should investors be looking for the rest of the year?

Gilbert points to a number of different sectors.

"Tech is in a position to keep performing on the basis that inflation keeps falling and interest rates are cut," he says. "High-profit margins and fortress balance sheets make big tech defensive to slowdown risks."

Consumer staples and utilities are also attractive. They offer defensive cash flows, are less exposed to rising economic growth risks and feature robust dividends.

However, Gilbert notes healthcare as one of the most encouraging options.

"We're seeing cheaper valuations, more growth and some rising cost protection," he says.

Gilbert sees AI stocks as an important example of how investors can prioritise long-term industry trends over short-term investment decisions.

"Thematic investing is also likely to be important," he says. "AI stocks have seen considerable growth in the last 6 months or so."

The best ways to stay current as an investor

"Identifying major developments and identifying the stocks that stand to gain the most from them is one of the keys to investing success," Gilbert says.

Ensuring that you have the right tools in place is critical for this process.

Many trading platforms offer educational resources to help you develop as a trader and make more informed decisions.

For example, eToro offers a range of different informational and educational tools, such as eToro Academy.

By experimenting with new strategies, keeping up to date with market developments and adjusting your investment plan as necessary, you'll be able to stay in the loop.

How long can the bull market be expected to last?

In 2023, the Nasdaq 100 index had one of the best starts to the year in its history, gaining over 35% in the first 6 months of the year.

But realistically, this can't last forever – so how does Gilbert see the second half of the year playing out?

He's hesitant to put hard dates in place, but he does note some important signs.

"Realistically, we're due a slowdown in the pace of this rally," he says. "Now that doesn't mean the rally is over – but it seems unlikely that there will be another 35% gain in the second half of the year."

The first half of the year, Gilbert notes, was driven by economic slowdown risks being pushed back, US GDP on track to grow by 2% and inflation falling fast in the US.

There will be bumps in the road, Gilbert notes. But he's certainly not dour about the wider outlook.

"The current environment is still well-placed for assets such as healthcare, big tech and traditional defensive assets," he says.

To learn more about trading, visit eToro today

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.

Trade with eToro

Name Product AUFST Price per trade Inactivity fee Asset class International
eToro
US$2
US$10 per month if there’s been no log-in for 12 months
ASX shares, Global shares, US shares, ETFs
Yes
Exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account. T&Cs apply.
Trade stocks, commodities and currencies from the one account and get access to social trading.
loading
eToro disclaimer: eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro AUS Capital Limited ACN 612 791 803 AFSL 491139. Smart Portfolios are not exchange-traded funds or hedge funds and are not tailored to your specific objectives, financial situations and needs. Your capital is at risk. See PDS and TMD.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years may not suffice as basis for investment decision.

Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.
Image Composite: whyframestudio, Kativ, alberto clemares exposito
Go to site