The majority in the survey expects that both the OSEBX-index and S&P 500 will rise more than ten percent and that equities will the best performing asset class in 2023. Only one respondent expects a correction this year.
"While it's not uncommon to see a market rebound after a period of sharp decline, many of the same uncertainty factors which affected global economies and markets last year will likely continue to influence investors in 2023 as well. The high inflation and interest rates will continue to impact asset prices, and the potential of a recession will also contribute to volatile markets," says Erlend Fredriksen, President of CFA Society Norway and Portfolio Manager in DNB Markets.
Real estate is predicted to be the worst performing sector as rising inflation and higher interest rates will continue to cause turmoil in the housing market. Accordingly, most respondents predict that housing prices in Norway will fall between five and ten percent in 2023 while Norges Bank is expected to continue its rate hikes toward an interest rate level between 3.0 and 3.5 percent by the end of the year
Cryptocurrencies, which has seen sharp decline lately, are predicted to be the worst performing asset class in 2023.
About the survey
The survey was conducted between 14 December and 11 January 2023. Respondents hold positions in private banking, portfolio management and analysis, and company finance departments.