Quarterly market outlook - 1st Quarter, 2023
Our investment strategists provide the Edward Jones perspective on the latest economic activity and what it may mean for investors.
The Quarterly Market Outlook provides investors with our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, equities, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.
These aren’t short-term predictions. Rather, this is Edward Jones’ perspective on market and economic topics designed to help you make decisions affecting your long-term financial strategy. As you read through each topic, you'll find specific actions you can discuss with your financial advisor.
Looking back at the 4th quarter
All asset-class returns in our framework were positive in the quarter. Government bond yields continued to be volatile and closely watched by fixed-income and equity investors alike.
Economic outlook
We think a mild recession will materialize in 2023 as the full impact of the Bank of Canada’s and U.S. Federal Reserve’s restrictive rate hikes filter through the economy.
Equity outlook
After a challenging 2022, Canadian and U.S. equity markets may continue to face headwinds in Q1. The Bank of Canada and Federal Reserve are likely to enact a final leg of rate hikes, and the Canadian and U.S. economies may enter a mild recession in the first half of 2023.
Fixed-income outlook
As inflation moderates and the central banks tightening campaigns end, interest rate volatility is likely to settle down, with upward pressure on yields starting to ease.
International outlook
We think global challenges (the war in Ukraine in particular) will persist, but possibly become less acute as inflation pressures recede, China’s economy stabilizes and the U.S. dollar softens, supporting the case for global investment exposure.
Sustainable investing: Key questions for 2023
Sustainable investing is a way for investors to align investments with their values or support companies that are focused on improving ESG (environmental, social and governance) practices.
Strategic asset allocation guidance
Our Strategic Asset Allocation represents our view of balanced diversification for the fixed income and equity portions of a well-diversified portfolio based on our outlook for the economy and markets over the next 30 years.
Quarterly market outlook - Full report from Edward Jones
Download the entire quarterly market outlook report here.