An Investor’s Holiday Wish List

November 21, 2022 | Greg Leonberger, FSA, EA, MAAA, FCA, Director of Research, Managing Partner

Hopefully not another year of coal
In the spirit of holiday fun — and an effort to put 2022 investment returns behind us — we have put together our investor wish list for 2023. We have broken the wish list into two categories: the “must-haves,” which carry the most weight and are most observable, and the “stocking stuffers,” which may not be headline grabbers but are nonetheless impactful across economies and markets. Predictably, the “must-have” items focus on a reversal of the major trends that drove the markets this year; we “must have” a better outlook across at least some of these topics. The “stocking stuffers” category is a variety of topics that either directly impact the major trends from 2022 or are more targeted with their impact on specific asset classes. And while we recognize this is not an exhaustive list, we feel strongly that if these wishes come true we can all feel better about market returns in 2023.

This year’s must-haves:

• Lower inflation
• Less aggressive Fed policy leads to fewer interest rate hikes in 2023
• Avoid a deep recession
• Resolution of geopolitical conflicts

And stocking stuffers:

• Broad-based earnings in the U.S. stock market
• A weaker U.S. dollar
• Credit defaults start to flatline
• Slowdowns in hiring and wage growth
• Favorable news out of China
• History repeats itself

Read > An Investor’s Holiday Wish List

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.