Navigating the new road ahead

Also Interesting

• “What should be” versus “What is likely to happen”
• The case for active equities in the U.S.
• Global outlook 2022

2023 Global equity outlook

The months of November and December are all about expectations management in most family homes in the UK, as (occasionally unrealistic) children’s expectations for Christmas presents come into conflict with the economic realities of family budgets. It is little different in global equity markets—particularly in 2022.

Investors are hoping for a seasonal gift from Federal Reserve (Fed) Chair Jerome Powell and his colleagues in the Policy Committee. A pivot away from the rapid pace of monetary tightening would be high on the Christmas wish list for many after a punishing 2022. With cash balances high, according to fund manager positioning surveys—any such change of tone by the Fed would likely release a substantial rally in equity markets.