Will the ASX 200 hit 7,500 again in 2023?

Will we see ASX shares shoot the moon this year?

| More on:
Boy looks quizzical standing in front of a graph.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The ASX 200 first hit 7,500 points back in 2021
  • The last time it was there was in February
  • But since then, the Index has traded sideways

So will the S&P/ASX 200 Index (ASX: XJO) hit 7,500 again this year in 2023? Good question!

Of course, the ASX 200 has been at 7,500 points before. A few times, actually. The first time the ASX 200 ever crossed the 7,500-point threshold was back in August 2021. A few days later, we saw the index touch its current all-time high above 7,600 points. But it wasn't to last.

The next time the ASX 200 had another incursion above 7,500 points, it was back in April of 2022. The time after that was recent, in February of this year:

Created with Highcharts 11.4.3S&P/ASX 200 Price Return (AUD) PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

On all of these occasions, the ASX 200's journey above 7,500 points didn't last too long. But perhaps next time will be different.

So will 2023 give the ASX 200 another shot at this milestone?

Will the ASX 200 see 7,500 points again in 2023?

Well, I'll keep this quick. I have no idea. And nor does anyone else. Predicting what the share market will do next is a fool's game (and not the good kind of Fool).

Perhaps additional interest rate rises, more bank failures, some global catastrophe, or sheer investor apathy will drag the ASX 200 under 7,000 points over the rest of the year.

Perhaps investors keep ASX shares where they are for the rest of 2023.

Or perhaps interest rate cuts, good economic news, or unbridled investor optimism will drag the ASX 200 back over 7,500, or even over 8,000 points by the end of the year.

As it stands today, all of these scenarios are possible. And since we don't know what the rest of 2023 has in store for us, there is no way of knowing what might happen. As such, I believe it is folly to try and make decisions or predictions based on events that are impossible to predict.

But here's what we do know. ASX shares go up far more often than they go down. And the ASX 200 Index has never once failed to regain and surpass a previous all-time high.

These are things we know to be true and, thus, we should base our investing habits on them. So I'm going to keep investing in ASX shares throughout the remainder of 2023, regardless of what the markets do.

Mathematics is on the side of the investor who knows the history of the share market. If shares go up more than they go down, it makes sense to buy as much of them as possible as soon as you can.

 

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

A happy young couple lie on a wooden deck using a skateboard for a pillow.
How to invest

How to build wealth with ASX shares without taking big risks

Many investors believe they need to chase high-risk, speculative ASX shares to grow their wealth quickly. But in reality, most…

Read more »

Happy man holding Australian dollar notes, representing dividends.
How to invest

How $500 a month in ASX shares could become $1 million

It might not be as hard as you think to become a millionaire through the share market.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
How to invest

How to invest when the ASX hits a record high

Worried about buying at today's prices? Here's why you shouldn't be concerned.

Read more »

A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising
How to invest

Lessons from a self-made ASX millionaire

Here's how he did it.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
How to invest

$20,000 in savings? Here's how to target $1,000 of passive income each month

This could be the easiest way to build a meaningful passive income from the share market.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
How to invest

The 3 rules new ASX share investors should always follow

These rules could help you generate wealth in the share market.

Read more »

Person holding Australian dollar notes, symbolising dividends.
How to invest

How to build a $1,500 monthly income stream with ASX dividend shares

It isn't as hard as you think to build a monthly income stream on the share market.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
How to invest

How to start your ASX share portfolio with just $1,000

Investing doesn't need to be hard. Here's an easy way to start.

Read more »