Outrageous Predictions 2023: The War Economy
2022 delivered a profound inflationary shock to the world, one that was brewing from the excessive stimulus of the pandemic response policies of 2020 and 2021, and then doubly aggravated by supply side disruptions and then in early 2022 by Russia’s invasion of Ukraine. As we say farewell to an inflationary annus horribilis, many believe that we are somehow set to return to some form of normality on the heels of a hefty dose of central bank policy tightening. This year’s Outrageous Predictions argue that any belief in a return to the disinflationary pre-pandemic dynamic is impossible because we have entered into a global war economy, with every major power across the world now scrambling to shore up their national security on all fronts, whether in an actual military sense, or due to profound supply-chain, energy and even financial insecurities that have been laid bare by the pandemic experience and Russia’s invasion of Ukraine.
What's the idea? Although Generac is the market leader in standby power generators, the company's current penetration rate is only 5.5%. A one percentage point increase in penetration could provide Generac with around $3 billion in additional revenue. We expect the company to be one of the beneficiaries of the growing solar energy market through its advanced storage solutions. Generac's board of directors has approved a new $500 million stock buyback programme, to be implemented within 24 months. Generac is trading at a discount to the industry average. According to Wall Street consensus, the stock price has an upside potential of more than 60%.
What's the idea? An increasing population and economic growth in emerging markets will stimulate livestock production, which will be a growth driver for the Feed Ingredients segment. Management expects the collagen peptide market to double in the next five years. The company is expected to have additional collagen production capacity as early as the beginning of 2023. We expect the Fuel Ingredients segment to continue to show growth on the back of favourable market conditions and capacity expansion. Target markets have low susceptibility to economic cycles, which can ensure Darling's resilience even in the event of a deep recession. According to the Wall Street consensus, the stock's upside potential exceeds 53.15%.
What's the idea? A slowdown in US inflation should help the company improve its operating performance and positively impact the value of gold. The projects in the pipeline have good potential for Kinross value growth. Adequate debt levels allow the company to continue with key projects even in turbulent conditions. About Company. Kinross Gold Corporation is engaged in gold mining and related activities including exploration, acquisition and reclamation of gold properties, mining and processing of gold-bearing ore. The company has operations in the United States, Brazil, Chile, Mauritania and Canada.
What's the idea? Integrating technology into all corporate operations provides significant growth potential for the digital customer experience management industry. Through a series of strategic acquisitions, TELUS has entered the prominent and promising markets of content moderation and data annotation for artificial intelligence. Unlike most industry players, TELUS offers its customers complete solutions, giving them a significant competitive advantage. We expect the company's future M&A deals to be predominantly complementary rather than transformational. TELUS trades at a discount to the industry average. According to Wall Street consensus, the stock has more than 60% upside potential. 
What's the idea? The digitalisation of companies, in addition to new horizons for business, also opens up new opportunities for criminals. Based on expert forecasts, we expect demand for cyber security products to grow. We suggest that investors diversify their portfolios by adding stocks in this area so as not to miss out on possible profits. We have selected two companies that can show good returns: Rapid7, Inc. and Datadog, Inc. 
What's the idea? The digitalisation of companies, in addition to new horizons for business, also opens up new opportunities for criminals. Based on expert forecasts, we expect demand for cyber security products to grow. We suggest that investors diversify their portfolios by adding stocks in this area so as not to miss out on possible profits. We have selected two companies that can show good returns: Rapid7, Inc. and Datadog, Inc. 
What's the idea? As we said previously, an acceleration in the rate of inflation reduction could start as early as the first half of 2023. The realisation of this forecast would push the US Federal Reserve to ease monetary policy, which would ultimately have a positive effect on stock and debt markets. In order not to miss the start of the rate cuts and to participate in the bond rally, we suggest gradually gaining positions in funds that specialise in corporate bonds and can show good yields during the market recovery. 
What's the idea? As we said previously, an acceleration in the rate of inflation reduction could start as early as the first half of 2023. The realisation of this forecast would push the US Federal Reserve to ease monetary policy, which would ultimately have a positive effect on stock and debt markets. In order not to miss the start of the rate cuts and to participate in the bond rally, we suggest gradually gaining positions in funds that specialise in corporate bonds and can show good yields during the market recovery. 