The Balancing Act: Inflation vs Growth

What does 2023 have in store for investors?

See what our team of Portfolio Managers have to say about the key market drivers for the year ahead.

2022 marked a year where financial markets were challenged by an aggressive and synchronised monetary policy tightening. Russia’s invasion in Ukraine fuelled geopolitical tensions and higher energy prices. The increased inflation risk led to a strong adjustment to higher interest rates across the globe. Tightening of financial conditions, as well as China’s strict adherence to zero-Covid-19 policies also added economic growth concerns to financial markets. Both fixed income and equity markets closed the year down by double digits, as valuations declined and diversification ability across asset classes disappeared.