Investors may be hoping for a return to normal after interest rates stop rising and inflation subsides. But markets are experiencing several seismic shifts that will likely define the next decade of investing.
Weighed down by high inflation and rising interest rates, the U.S. economy is expected to contract by 2% in 2023, says economist Jared Franz. Key for investors is that stocks have tended to rebound before the economy, with the strongest gains often immediately following a bottom.
New market leadership often emerges at the end of a bear market. Learn why select health care, industrial and technology companies could be well positioned.
Weak economies in Europe and Japan, various troubles in emerging markets and a strong U.S. dollar have clouded the forecast for international equities. But avoiding them altogether would mean ignoring some of the largest and most successful companies in the world.
Even if you think economies outside the U.S. are headed for more trouble, there are important reasons to consider investing in international companies. Here are five:
Interest rate turmoil hit bonds hard in 2022. But those painful losses may help set the stage for income down the road. And with the U.S. Federal Reserve signaling an end to its hiking cycle is near, bonds may once again offer some stability.
After a tough year, bonds should once again offer diversification from equities and, therefore, a measure of protection when stock markets swing.
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