Can you believe it? December is almost upon us.
That means that, after a crazy year in share markets, expert predictions for 2023 will start to pop up.
One of the first cabs off the rank is Switzer Financial Group founder Peter Switzer.
"I reckon the [Australian] market goes up 10% next year," he told Switzer TV Investing.
"Add on dividends of 4% and franking too, and there's 15% or 16%."
As for individual stocks, he named three that are his favourites for next year:
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The stock capable of doubling in 2023
Virtual networking provider Megaport Ltd (ASX: MP1) has seen its share price tumble a hair-raising 66% year to date.
But Switzer is convinced it is poised for a turnaround.
"Megaport is one I really like," he said.
"Analysts really like it. At least two of the seven analysts see Megaport with over 100% gain over the next year."
The returns won't happen overnight, he added, and will need the market's "forgiveness of the tech sector".
"That will come when inflation peaks out in the US — and I think it's already already happening — and interest rates have peaked as well."
Those two conditions might still take some time to play out, Switzer warned.
"So it might not be until the second half of 2023 [that] the tech rebound will happen."
Great world-class company
Healthcare giant CSL Limited (ASX: CSL) seems to be a favourite among analysts at the moment, and Switzer is no exception.
"CSL is a company that's always worth investing in," he said.
"The share price is still below what most analysts believe it will be this year."
Consensus price target seems to be around $320, according to Switzer, but he reckons it will end up higher than that this time next year.
"CSL — great company, world class — has been going sideways for a number of years. It tends to do that and it takes off again."
Buy this stock while it's still out of favour
Electronics retailer JB Hi-Fi Limited (ASX: JBH) is Switzer's third favourite for 2023.
"These sorts of companies are out of favour at the moment because interest rates are rising," he said.
"People who have to make their mortgages on higher repayments will have less money to spend."
But he feels JB Hi-Fi is "a good company" that's worth considering as a long-term investment, with a nice income stream to keep investors going in the short term.
"JB Hi-Fi pays a really reasonably good dividend and is always a company of the future," said Switzer.
"As the old saying goes, when great companies are being beat up by the market, it's a good time to buy."
