FNArena’s Weekly Insights – January 30 2023
In this week’s Weekly Insights:
-2023 Will Be Different
-FNArena Market Indicators
-FNArena Talks
-Change In 2023
By Rudi Filapek-Vandyck, Editor FNArena
2023 Will Be Different
Never underestimate financial market’s ability (propensity?) to surprise when a majority view forms among investors and the experts that guide them.
Last year was all about the return of price inflation, the decisive response from central bankers and the consequences from both for economies, financial assets and corporate profits.
Judging from the first four weeks of January, the general slogan for 2023 is: And now for something completely different. Those worries I just mentioned, they are so backward-looking.
Instead the new points of general focus are all positives:
-Central bank tightening is nearing its end
-Official interest rates are projected to start falling later in the year
-Inflation and bond yields have peaked, and bonds are back as a valuable risk diversifier in portfolios
-China is re-opening, paving the way for a positive contribution to global growth
-Europe’s energy crisis is on course to avoid worst case scenarios
-Economic recessions might be avoided altogether (we’ll have slowdowns instead)
-Labour markets, economic data and consumer spending have all been fairly resilient to date
-The same can be said about corporate profits
-(Don’t mention the war)
In hindsight………………
