The Banking Executive Magazine - January 2023 Issue

Global Markets Outlook 2023 sustainable, more socially responsi- ble and more transparent. INVESTORS ADAPTATION Investors will be learning in the first few months of 2023. It is essential for investors to keep monitoring and adapt to global markets conditions. Investors should adapt their ap- proach for regions and markets. Eco- nomic challenges will play out differently across regions and cate- gories. Understanding how global markets are moving will be essential to tapping into growth opportunities. For example, developed markets are predicted to see lower GDP growth than their emerging counterparts, so investors may focus more on the emerging markets. DEMAND FOR ETHICAL AND SUSTAINABLE INVESTMENT Despite a generally weaker outlook for 2023, there will certainly be bright opportunities for investors that can be identified and grasped in global markets. Demand for ethical and sustainable investment opportu- nities is expected to rise over the coming years. 2023 FORECAST FOR VARIOUS ASSETS CLASSES IN GLOBAL MARKETS Stocks and bonds experienced signif- icant losses in 2022, making it one of the worst years for a balanced port- folio. Although there are indications that global inflation is on track to de- cline, it is unclear by how much and how quickly. In 2023, investors will focus on two central questions: • What asset class might help protect investment portfolio through a re- cession? • How much future damage will there be from risk assets? In 2023, investors may find opportu- nities in bonds, preferred equities, small and mid-cap stocks and infra- structure and transport assets. Addi- tional opportunities will probably emerge in sectors such as real estate, tech and tech-related sectors. Indus- trial companies, provide some infla- tion protection and benefit from global infrastructure and defence in- ISSUE 169 JANUARY 2023 the BANKING EXECUTIVE 39