AFMC - Economic And Market Review: Key Considerations For Equity Investors - Q1 2023

Summary

• We believe macroeconomic indicators offer little to cheer about in the first quarter of 2023 - and perhaps through the remainder of the year.
• Despite Wall Street’s rosier prognostications, we think that a challenging mix of alarming economic inequality, monetary policy headwinds and poor earnings quality will put increasing pressure on corporate profits and likely lead to even lower equity returns in the near term.
• Here, we will discuss the U.S. economy’s increasingly Dickensian divide; its implications for the Federal Reserve’s ongoing war on inflation; and what current conditions could portend for equity portfolios over the next quarter and beyond.

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