December 2022| The economic backdrop foreseen for the next 12 months suggests that the ongoing market correction will continue through the first half of 2023. In the second half of the year, we expect some of the headwinds to abate due to lower price pressures and a hold on interest rate rises. We believe this will support a gradual shift from a defensive stance, with its tilt towards gold, investment grade credit and government bonds, to increased risk exposure through developed market equity and high-quality credit.
01 | This Month's Topic: We expect the ongoing market correction to continue through the first half of 2023, accompanied by a profits recession and still-elevated inflation.
02 | Thematic:The European Commission's new framework could help make Europe more resilient by reducing public debt ratios without sacrificing strategic investment spending.
03 | Thematic:The war in Ukraine will likely continue to dictate Europe's prospects in 2023 by shaping politics, energy security, industrial policy, and international relations.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of November 30, 2022. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.
