Trail Guide to 2023 Asset Class Performance
Also Interesting
2022 was a run to forget for investors. However, the “yard sale” of 2022 has created opportunities across asset classes for the coming year, most notably in fixed income, hence its green rating. The equity story is more nuanced in that the 2022 losses have moved the asset class to more favorable valuations but lingering macroeconomic headwinds and earnings reductions could make for a bumpy ride down the mountain, particularly during the first half of the year. Alternative asset classes — hedge funds, real estate, and private markets — offer a variety of income, diversification, and upside potential based on the underlying asset classes and strategies. These options are not without risks but have a more limited downside than publicly-traded equities. Overall, we are cautiously optimistic about returns across asset classes for the coming year and feel confident that the evolving market environment will generally move markets higher. Collectively, we hope the après-ski lookback next year tastes better than this year’s version and we can toast to positive returns for our client portfolios!
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