What’s Important:
- A mild recession in the United States is likely, and Europe will endure a deeper recession driven by energy in the first half of 2023.
- China will continue to see economic challenges based on its COVID policies and rising geopolitical tensions.
- 2023 is likely a highly bifurcated year for investing, with stronger fixed income returns, modest equity returns and a “stay-at-home” approach favoring U.S. equities versus international.
