Where have we been… Where are we now?

2023 emerged as a year of resilience and unexpected positive turns, defying the new normal of higher interest rates, which were expected to exert pressure on the economy and markets. Following a challenging 2022, the consensus among economists leaned heavily towards the anticipation of a recession within the year. Wall Street’s S&P 500 forecasts mirrored this caution, spanning a conservative range from 3,675 to 4,500, with a median target near 4,000, signaling minimal growth expectations. This pervasive pessimism was largely fueled by the aggressive interest rate hiking cycle implemented by the Federal Reserve in a bid to curb decades high inflation. Monetary policy adjustments, coupled with ongoing concerns over consumer financial stability amid persistent inflation and market volatility, set a cautious tone for the year. In addition, central bank intervention, key economic indicators such as the yield curve inverting, a regional banking crisis, and increasing geopolitical tensions amplified uncertainty.

In an environment defined by rapid change, we remain focused on empowering our clients with strategies that build resilience, while also equipping financial professionals with the insights and resources they need to guide investors confidently through the new normal.