Alfred Lam, CFA, Senior Vice-President, and Head of Multi-Assets CI Global Asset Management
Investors’ appetites have increased as we entered 2023. Generally, at asset class level, the larger the loss in 2022, the larger the gain (recovery) in 2023, though this is only the data for January (see chart below). We recognize investors are feeling reassured by progress on several issues: First, China exited their zero-COVID restrictive policy and is now fully reopened. Second, inflation is cooling and there is confidence it will gradually decline to 3% in 2023. As a result, central banks will at least pause hiking rates in the coming months. Third, the Russia/Ukraine situation, while unresolved, is also not getting worse. Last but not least, Europe was able to maintain healthy natural gas inventory as the winter was warmer than usual, hence lower drawdown.
Read the rest of Alfred’s comments by downloading: 2023 February Portfolio Construction
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