Summary
- While 2022 was one of the toughest years ever for markets, the final quarter provided some relief.
- Major central banks, including the Fed, European Central Bank, and Bank of England, continue to wrestle with stubbornly high inflation rates.
- There's much disagreement about what 2023 holds for inflation and Fed policy, but views for 2024 are much more aligned around normalization, with falling rates, better bond returns, multiple expansion, and modest earnings growth that would bolster equity markets.
For further details see:
Capital Markets Outlook: Q1 2023