Last year was brutal for global equity markets as central banks tightened rates aggressively to curb inflationary pressures. Moved by signs of peaking headline inflation and decelerating core inflation, improved equity returns in the final quarter of 2022 showed an increasing belief among investors that the tightening cycle is nearing its end. An uneven equity recovery started in the fourth quarter. While growth stocks still face headwinds, we are beginning to see different growth clusters starting to do better. Significant P/E-multiple compression over the past year resulted in below-average valuations. Broader market earnings growth estimates are likely to remain choppy for a while, making companies with durable earnings growth more attractive.