A Year of Inflections
Year Ahead 2023
Welcome
Year Ahead 2023
Navigating inflection points will be key to investment success in the year ahead. It will be our challenge and privilege to help guide you through them. We thank you for your trust and look forward to helping you realize your financial goals.
A Year of Inflections
A Year of Inflections
In 2022, inflation stayed high, interest rates rose, growth expectations fell, and both equity and bond markets suffered. 2023 will be a year of inflections as investors try to identify turning points for inflation, interest rates, economic growth, and financial markets against a complex geopolitical backdrop.
What does it mean for investors?
History tells us that durable turning points for markets tend to arrive once investors begin to anticipate interest rate cuts and a trough in economic activity and corporate earnings. As we enter 2023, high inflation and rising interest rates alongside elevated earnings expectations and geopolitical risks inform our investment themes of defensives, value, income, and safety. But we think the backdrop for risky assets should become more positive as the year progresses. This means investors with the patience and discipline to stay invested should be rewarded with time. Investors currently sheltering from volatility will need to plan when, and how, to rotate back into riskier assets over the course of 2023.
The Decade Ahead
The Decade Ahead
This “Decade of Transformation” has already brought significant changes in the global economic, political, societal, and environmental landscape. But we think a more positive secular backdrop remains possible.
Despite heightened risks to the near-term outlook, lower equity valuations and higher bond yields should also be supportive of stronger returns for diversified portfolios over the decade ahead.
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The full report is for clients only
Our full report, including investment ideas for 2023 and beyond, is reserved for clients only. Start a conversation to find out how we can help you meet your goals.