Will shares go up in 2023? CommSec forecasts lift

Illustration of confident businessman helping lift up the end of a bar graph to a new high level

If you’ve wondered about whether to dive into the world of online share trading in 2023, economists at CommSec are forecasting a 4.7% lift in the Australian share market over the next twelve months.

It could be the start of a recovery from last year’s slump. 

The Australian share market fell 5.5% in 2022, according to the CommSec Year in Preview report. 

This reversal of fortune could depend on factors like inflation, global interest rate changes, and the recovery of China’s economy, among others, according to CommSec’s Chief Equities Economist Craig James. 

“High levels of inflation, continued uncertainty about interest rates, tight labour markets, high energy prices, the war in Ukraine and the re-opening of the Chinese economy pose both risks and opportunities for investors,” he said. 

2023 looks to be a year of slowed growth for the Australian economy 

Economists at the Commonwealth Bank of Australia (CBA) say the growth of the domestic economy is likely to slow from 3.5% in 2022 to 1.1% in 2023, citing issues in the global market. 

CBA also predicts another 25 basis-point interest rate rise in February 2023, when the Reserve Bank of Australia reconvenes. 

If this were to happen, this would take the cash rate to 3.35%, which could further reduce the borrowing power of Australians, and force households and companies to reduce their spending.

2023 may not be great for growth-focussed sectors 

Despite a recovery forecasted, CommSec says the global economy “may not be conducive for ‘growth-focussed’ sectors” in 2023. 

However, there may be good news for long-term investors with a focus on the future – both in the second half of 2023 and into 2024.  

With expectations pointing to interest rate cuts later this year, consumer discretionary (non-essentials), information technology, property, and small-cap companies may provide hope for investors in the second half of 2023, according to CommSec.

Are you looking to get started in share trading in 2023? Make sure you check out our share trading guide for absolute beginners, to help get your head around some of the key ideas when it comes to investing in the stock market. 

Or, if you’re a seasoned trader, looking for a fresh, new platform to invest with, compare share trading accounts with Mozo. You’ll find information like brokerage costs, monthly fees, and an overview of a platform’s features and capabilities at a glance. 

Here’s a preview of the accounts and offers currently available in the Mozo database:

Share account comparisons on Mozo - rates updated daily

Search promoted share trading below. Advertiser disclosure.
  • Tiger Account

    Small trade brokerage
    Monthly fee
    $5.50
    $0.00

    Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Mozo special offer for new users only: 7% p.a. on uninvested cash balance up to AUD 100,000 for the first 150 days, with a value up to AUD 2,877. Plus receive US$30 Tesla (TSLA) and US$30 NVIDIA (NVDA) shares with an accumulated deposit of at least AUD 2,000. T&Cs apply – for full details, go to the Tiger Brokers website.

    Details
  • Share Trading

    Small trade brokerage
    Monthly fee
    $7.70
    $0.00

    Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).

    Details
  • ASX Shares

    Small trade brokerage
    Monthly fee
    $0.00
    $0.00

    Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.

    Details
  • Idle Cash

    Small trade brokerage
    Monthly fee
    $5.50
    $0.00

    Receive interest on your uninvested cash. Deposit over USD/AUD 5,000 to start receiving 1.5% return; 2.25% return on over AUD 50,000; Up to 3.25% return on over USD 50,000. Mozo special offer for new users only: Get USD 50 fractional shares plus USD 25 Tesla shares with a cumulative net deposit of min. AUD 500 within 7 days of the first account opening. T&Cs apply.

    Details
  • Share Trading

    Small trade brokerage
    Monthly fee
    $8.00
    $0.00

    Enjoy access to over 13,000 local and international shares and ETFs with $0 Commission on all international shares including US. Trade pre- and post-market with extended hours on over 70 key US shares. Get better rates on domestic shares for active traders - trade Australian shares from $5 commission. (T&Cs apply). Around the clock customer support from real humans (not chat bots). Trade international and Australian shares from the one account with intuitive desktop and mobile app.

    Details