Global Investment Outlook 2023
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Parallel Worlds We’ve entitled the outlook “Parallel Worlds”. Our motivation for using this phrase is to reflect some different realities which confront investors in 2023 – that is to say, different economic trends in different parts of the world, a different economic environment versus what we have become accustomed to in the 2010s, and some big and important shifts in market valuations, which we think really change the game for investors. If 2022 was a year of the inflation surge, rising rates and falling equity market multiples, we think 2023 is going to be a year about the macro cycle. |
During 2022, we have faced “a global poly-crisis”. Geopolitical uncertainties, a China growth slowdown, stagflation, the climate crisis, financial instability and recession risks all had an impact on markets, individually and collectively.
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A new investment strategy playbook: Three key pillars
First is the emphasis on portfolio dynamism, second, is the idea of being active in emerging markets and third, is the requirement to continue to look more broadly for diversifiers.
The capital market line (representing an optimal combination of risk and return) has shifted upwards
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In a turbulent world, market price dispersion remains high
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The hunt for new diversifiers has intensified
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Investment expertise
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Any views and opinions expressed are subject to change without notice. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. We accept no liability for any failure to meet such forecast, projection or target.