Whilst the cost of living crisis may depress disposable income, next year could present good investment opportunities if there's some money left in the family budget for that. I expect the markets to bottom out in the next three to six months, creating an opportunity to buy solid stocks on the cheap.
Raising rates have had an outsized impact on Big Tech valuations that I put down, in part, to overreaction. With hiking cycles slowing down and eventually coming to halt next year, I expect some fundamental re-evaluation – and, in turn, some material price improvements in the sector.
Given the FTX debacle, I expect regulation to be fast-tracked. This may have a significant negative impact on prices in the short term, but I do welcome regulation and believe it will help pave the way for onboarding a lot of institutional investment.
I don't believe that they are suitable for an investment portfolio with a medium to long-term view. Scalpers and algorithm-based traders may benefit from their volatility profile, but investors who are not looking to trade that actively should stay away from them.