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#UnlockThePotential: The S&P 500’s Top 5 in 2023!

2020 was not the best of years for the stock market, given the pandemic shaking the world last year. But, as has been emblematic since its establishment, the stock market is no stranger to volatility and a rollercoaster of performance. New year brings new promise, and with it new possibilities and opportunities. So what are the five charts that we should watch in 2023? The stock market is the powerhouse of the world’s investment and economy, and the benchmark for investments and speculation. It is an essential part of any investor’s portfolio and strategy. As always, the eyes of the investors are fixed on the S&P 500 index, a total market index of 500 publicly traded stocks, and which has been the benchmark since 1957. It provides investors an indication of the market’s overall performance and for a reliable base line to measure against. Over the years, it has proven to be a reliable and strong indicator of the market’s performance and health. The Nasdaq Composite index is the second most watched index and one of the most closely monitored in the stock market. Often termed the stock market of technology, it is in essence a total market index that tracks market performance of over 3,000 stocks across different sectors. With the rise of technology and digital transformation, the Nasdaq has been proving to be a highly reliable and trusted source for investors to track their investments and performances. On the other side of the spectrum, we have the Dow Jones Industrial Average (DJIA) index, which is possibly the oldest stock market index, created since 1896. It provides a track of the stock performance of 30 of the largest and most powerful publicly traded US corporations. While it provides investors with insight into the performance of these core 30 corporations, it does not represent the entire stock market. The Russell 2000 index is next in our list and is in some ways a challenger to the S&P 500. Trading since 1984, it tracks the stock performance of approximately 2,000 small-cap companies in the US, providing investors an additional perspective to understand the US stock market. Finally, we have the VIX index, often called the “fear index”. Unlike the other indices discussed, the VIX does not provide an indication of performance of any company, industry or sector. Instead, it represents the market’s expectations of volatility over the next 30 days. As often seen, it is an important indicator of bullishness or bearishness of the market in the short-term, and is one to watch out for in 2023. So there you have it, the five indices to watch in 2023 and investors’ best guide to tracking performance and trends in the stock market. The stock market always has something to offer, and these five indices are a reliable source of information for investors of all kinds to stay informed and on top of the game.