2023 Investment Market Outlook

Our investment views are based on a simple idea: as facts change, so may our outlook. The last few years have been an interesting period for this ethos as our annual outlook is beginning to feel like a game of ping-pong, oscillating between bulls and bears, as the environment shifts around us…

Key Observations

• Our capital market forecasts increased across all asset classes, most materially in fixed income given the change in yields over 2022.

• The three themes we see driving the market, Persistent Volatility, Moderating Inflation and a Bear Market Bottom, will come to life over different time periods in 2023 and beyond.

• Year-over-year we are adding to high quality fixed income and high yield primarily by reducing dynamic bonds and increasing U.S. mid and small caps from U.S. large caps. We remain modestly overweight to non-U.S. equity but are not adding to the position.