2023 Investment Outlook
Our annual Outlook report offers long-term perspective on markets and economies
2023 Outlook webinar
Our investment team shares the changes they see coming in 2023.
2023 MARKET OUTLOOK
Will the global economy tip into recession?
Most of the world’s economies are in or near recession, thanks to slowing growth, war in Ukraine, a lingering pandemic, high inflation and rising interest rates. One potential bright spot? Recessions historically haven’t lasted very long — about 10 months on average.
A new reality for investors
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.
U.S. INVESTMENT OUTLOOK
U.S. economic outlook for 2023
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.
Sources: Capital Group, Federal Reserve Board, Haver Analytics, National Bureau of Economic Research, Standard and Poor’s. Data reflects the average of completed cycles in the U.S. from 1950 to 2021, indexed to 100 at each cycle peak. Industrial production measures the change in output produced by manufacturers, mines and utilities and is used here as a proxy for the economic cycle. Past results are not predictive of results in future periods.
Searching for the next market leaders
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.
Sources: Capital Group, Federal Reserve Board, Haver Analytics, National Bureau of Economic Research, Standard and Poor’s. Data reflects the average of completed cycles in the U.S. from 1950 to 2021, indexed to 100 at each cycle peak. Industrial production measures the change in output produced by manufacturers, mines and utilities and is used here as a proxy for the economic cycle. Past results are not predictive of results in future periods.
INTERNATIONAL INVESTMENT OUTLOOK
International equities outlook for 2023
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.
It’s about companies, not economies
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:
FIXED INCOME INVESTMENT OUTLOOK
Bond market outlook for 2023
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.
How could bonds fare as the Fed slows rate hikes?
After a tough year, bonds should once again offer diversification from equities and, therefore, a measure of protection when stock markets swing.
Get the 2023 Outlook report
Long-term perspective on markets and economies
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*Source: Fund Intelligence, February 20, 2020. FUSE Research survey of nearly 600 advisors identifying the “most-read thought leaders.” Marketing Support: The Advisor View, June 2020. FUSE Research survey of more than 700 advisors identifying the “most-read thought leaders.” Marketing Support: The Advisor View, July 2021. FUSE Research survey of 720 financial advisors identifying the “most-read asset manager thought leaders.”
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