Capital Group

What a difference a year makes. At the start of 2023, market pessimism was widespread, investors braced for a recession, and many expected another down year in stocks. Instead … we had surprises.

Under the weight of elevated inflation and high interest rates, the world’s major economies are diverging.

Despite interest rates being hiked to their highest level since the mid-2000s and a mini crisis in the US banking sector, a recession has, so far, been avoided.

One question we have heard at virtually every client meeting over many years is, “Are you concerned that US government debt is too high?”

The global investment grade corporate bond universe is very diverse. This diversity provides fertile ground for a well-resourced asset manager to consistently add value to sector returns over a market cycle.

To say this has been an interesting year in financial markets is an understatement.

Given the vast potential of AI, it’s no surprise the market has sought to sniff out early winners and losers.

If market declines make you nervous, you’re not alone. But while bear markets can be extraordinarily difficult, they also can be moments of opportunity.

As we reach the midpoint of 2023, global markets have shifted from binary to balanced, from either/or investment choices to a much broader set of opportunities − which is good news for active investors.

Even as the global economic outlook weakens, powerful tailwinds are forming behind certain areas of the equity markets that previously spent many years in the wilderness.