UBP Investment Outlook 2023 in a nutshell

Investors were buffeted throughout 2022, first by the shock of Russia’s invasion of Ukraine and then by the fastest rate-hiking cycle by the US Federal Reserve in a generation.

Looking ahead, the agility that was required to navigate markets in 2022 will remain an asset in 2023 as the global economy treads a fine line between developed economies entering recession and emerging ones seeking to consolidate recoveries. Hedge funds should continue to provide shelter for equity investors in particular, as high interest rates, elevated volatility, and the broadest single-stock dispersion since 2007 provide multiple return drivers in the new year.

Overall, these paradigm shifts will require investors to walk a tightrope between new opportunities and risks associated with the transition of the global economy. As a result, in 2023 we expect to continue to rely on active and dynamic risk management to help us maintain our commitment to both preserving and growing our clients’ wealth.