Financial Symposium 2023 (VIP)

We’ve entitled our 2023 Investment Outlook “Parallel Worlds” to reflect some different realities which confront investors in 2023 – that is to say, different economic trends in different parts of the world, a different economic environment versus what we have become accustomed to in the 2010s, and some big and important shifts in market valuations, which we think really change the game for investors.

Despite the recent rally in stocks, our house views continue to reflect an overall selective stance and we don’t advocate an aggressive use of risk budgets early in the year. Bonds seem to be the natural asset at this point in the economic cycle and market cycle. Shorter-term bonds are preferred for now, in our view, to protect against interest rate risk and uncertainty. That is because values of longer term bonds are most sensitive to interest rates changes. We also want to be selective and…