Wealth Outlook 2023
Roadmap to recovery: Portfolios to anticipate opportunities
We expect 2023 to be a year of challenges but also of change. After 2022’s aggressive monetary tightening, we see a shallow recession in the US and worse in some other places, like the Eurozone. The painful market selloffs we saw in 2022 anticipated these conditions. Remember, historically equities have never begun recovering before a recession has even started.
During 2023, however, investors’ focus will shift to potential recovery in 2024. By understanding what is likely for the global economy and asset classes in the coming year, we can see a roadmap for investing.
Read Report >
Wealth Outlook 2023
At a glance
While global growth is set to worsen for some of 2023, we also expect markets to start focusing on the recovery that lies beyond. In this article, we highlight our key themes for the coming year ahead.
Wealth Outlook 2023
Roadmap to Recovery
David Bailin, Chief Investment Officer and Global Head of Investments, Citi Global Wealth, presents our Annual Outlook 2023, which sets out Citi's expectations, key investment themes and steps that investors can consider for the coming year and beyond.
Read Report >
Wealth Outlook 2023
Putting your cash to work in a higher rate environment
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, discusses the risks of sitting out in cash and the opportunities that await in fixed income and equities.
Read Report >
Wealth Outlook 2023
Unstoppable trends – The future of healthcare
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, talks about an industry that may potentially benefit from this shift-healthcare.
Read Report >
Wealth Outlook 2023
Unstoppable trends – G2 Polarization
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, delves into what the latest decoupling between the world's two leading powers mean for investors.
Read Report >
Wealth Outlook 2023
Unstoppable trends – Greening the world
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, talks about the case for renewable energy and how this represents another kind of opportunity for investors.
Read Report >
Wealth Outlook 2023
Unstoppable trends – Digitization
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, brings focus to the digital revolution and how it represents an unstoppable trend.
Read Report >
CIO Perspectives ꟾ Week of June 5th, 2023
A Rolling Recession
In this week's episode of CIO Perspectives, Ken Peng, Head of APAC Investment Strategy for Citi Global Wealth Investments discuss some of the recent events that may cause a protracted rolling recession and uncover the effects of these recent events on the various asset classes.
Watch Now >
CIO Strategy Bulletin ꟾ Week of June 5th, 2023 By Citi Wealth Insights
Something Has To Give
Employment gains in May were nearly twice as large as forecasters anticipated. Equities have rallied on the expectation that labor market gains can outlast the Fed’s tightening impacts on the broader economy. In a rolling recession scenario, the economy may escape a plunge, but we’re skeptical that recessionary industries under profit pressure can maintain their hiring pace. We believe a net slowdown in employment is ahead.
Wealth Outlook 2023
Roadmap to recovery: Portfolios to anticipate opportunities
We expect 2023 to be a year of challenges but also of change. After 2022’s aggressive monetary tightening, we see a shallow recession in the US and worse in some other places, like the Eurozone. The painful market selloffs we saw in 2022 anticipated these conditions. Remember, historically equities have never begun recovering before a recession has even started.
During 2023, however, investors’ focus will shift to potential recovery in 2024. By understanding what is likely for the global economy and asset classes in the coming year, we can see a roadmap for investing.
Read Report >
Wealth Outlook 2023
At a glance
While global growth is set to worsen for some of 2023, we also expect markets to start focusing on the recovery that lies beyond. In this article, we highlight our key themes for the coming year ahead.
Wealth Outlook 2023
Roadmap to Recovery
David Bailin, Chief Investment Officer and Global Head of Investments, Citi Global Wealth, presents our Annual Outlook 2023, which sets out Citi's expectations, key investment themes and steps that investors can consider for the coming year and beyond.
Read Report >
Wealth Outlook 2023
Putting your cash to work in a higher rate environment
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, discusses the risks of sitting out in cash and the opportunities that await in fixed income and equities.
Read Report >
Wealth Outlook 2023
Unstoppable trends – The future of healthcare
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, talks about an industry that may potentially benefit from this shift-healthcare.
Read Report >
Wealth Outlook 2023
Unstoppable trends – G2 Polarization
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, delves into what the latest decoupling between the world's two leading powers mean for investors.
Read Report >
Wealth Outlook 2023
Unstoppable trends – Greening the world
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, talks about the case for renewable energy and how this represents another kind of opportunity for investors.
Read Report >
Wealth Outlook 2023
Unstoppable trends – Digitization
Steven Wieting, Chief Investment Strategist and Chief Economist for Citi Global Wealth, brings focus to the digital revolution and how it represents an unstoppable trend.
Read Report >
Global Strategy ꟾ Quadrant May 2023
Economic Weakness Delayed, Not Discarded
Global growth was more resilient than we expected in early 2023, but economies won’t be immune to macro policy tightening, including potential new US fiscal restraints. While our forecasts are provisional ahead of any debt ceiling agreement, on early year strength, we have raised our 2023 global real GDP growth estimate from +2.0% to +2.5%. We’ve also raised US real GDP growth from +0.5% to +1.0%. Inflation is clearly slowing, but the durability of strong labor markets is a problem for the Fed.
US tech mega-caps have led world equities in 2023 after faltering on rate pressures in 2022. Questions remain as to how far this narrow leadership can take markets. Substantial declines in US small and mid-cap valuations should set the stage for stronger long-term returns. While we have held to our underweight for now, our strategy would be to add early rather than late as we target returns for the next 12-18 months.
World Investment Navigator – May 2023
- As the US Treasury warns it may have insufficient cash as early as June 1, the short-term bond market is already seeing risk-averse distortions.
- An agreement akin to 2011’s budget control act would now come at a time of significant Fed policy restraint.
- Upward surprises for 1H 2023 raise our provisional forecasts everywhere. For much of the world, we expect a slightly more resilient path forward.
- USD: Returns on DXY ahead of and following the US debt ceiling deadline from the 2011 episode.
- Small- and Mid-Cap has cheapened, but is more vulnerable to rising rates and falling profits.
- A playbook of recovery trades to keep in the back pocket.
- The Treasury yield curve continues to be priced for weak economic outcomes.
- We remain favorable on US IG-rated preferred securities offer competitive spreads relative to senior bonds from the same issuer, and higher quality HY bonds.
- S&P 500 bottom-up consensus quarterly EPS estimates.
- European equities: investor appetite grows again.
- Global investors have turned away from Chinese equities again.
- Japan: At the brink of policy normalization.
Citi Wealth Insights
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Global Strategy ꟾ Quadrant May 2023
Economic Weakness Delayed, Not Discarded
Global growth was more resilient than we expected in early 2023, but economies won’t be immune to macro policy tightening, including potential new US fiscal restraints. While our forecasts are provisional ahead of any debt ceiling agreement, on early year strength, we have raised our 2023 global real GDP growth estimate from +2.0% to +2.5%. We’ve also raised US real GDP growth from +0.5% to +1.0%. Inflation is clearly slowing, but the durability of strong labor markets is a problem for the Fed.
US tech mega-caps have led world equities in 2023 after faltering on rate pressures in 2022. Questions remain as to how far this narrow leadership can take markets. Substantial declines in US small and mid-cap valuations should set the stage for stronger long-term returns. While we have held to our underweight for now, our strategy would be to add early rather than late as we target returns for the next 12-18 months.
Disclaimer
This document is distributed in UAE by Citibank, N.A. UAE. Citibank N.A. UAE is licensed by UAE Securities and Commodities Authority (“SCA”) to undertake the financial activity as Promoter under license number 602003. Citibank N.A. UAE is registered with Central Bank of UAE under license numbers BSD/504/83 for Al Wasl Branch Dubai, 13/184/2019 for Mall of the Emirates Branch Dubai, BSD/2819/9 for Sharjah Branch, and BSD/692/83 for Abu Dhabi Branch.
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This forecast is an estimate/ example only. It is not a reliable guide to the future performance of this investment. It is not indicative, and it should not be construed as likely returns. There are potential risks of a loss as well.
Warning: Past performance is not a reliable guide to future performance.
Warning: These figures are estimates / examples only. They are not a reliable guide to the future performance of this investment.