The Investment Outlook Q2 2023

Cracks are starting to appear in developed-market economies because of the aggressive tightening of monetary policy last year. Although policymakers have intervened to avoid market contagion, we think these fissures are symptomatic of broad-based pressures that will see economic activity decline later this year, as developed markets enter a recession. We’re expecting the pattern of cross-asset market returns to be very different in 2023.