We start 2023 coming off a tough 2022 for both stock and bond investors, where both assets suffered significant declines. However, inflation issues and higher interest rates, which dominated market focus last year, will likely fade in intensity in 2023.
Since many are already discounting recession ahead, and markets are already pricing in higher rates and slower growth, we see some potential for a positive surprise this year.
This Viewpoint addresses Washington Crossing’s take on markets and the economy. We hope to offer practical and actionable portfolio guidance as we look to 2023 and beyond.