Reviews & outlooks

The curtain has closed on 2022 and a new dance looks set to play out in the year to come. Our Multi Asset Boutique experts are waiting in the wings, poised to capture the opportunities arising from any upcoming shifts in the global economy and financial markets. Vontobel’s latest Investors’ Outlook shines a spotlight on key factors to consider in 2023. It’s time for you to take the stage.

The euphoria in the financial markets has been driven by falling expectations of a severe recession. Although our models continue to indicate a US recession, this is likely to begin later in the year. This means there is no contradiction in the equity overweighting that is currently suggested by our model.

2022 was a stormy year for bonds. As 2023 gets under way, our Fixed Income Boutique heads predict whether bonds are set for a smooth touchdown or a bumpy landing amid the continuing headwinds in the global economy.

High yield markets entered the year at an attractive entry point and investors can enjoy the power of high carry with still solid credit fundamentals. Turning the page on a challenging 2022, the Global High Yield Bond team is hopeful 2023 will be a fortunate year for many things, especially income.

Global Listed Infrastructure are often considered a defensive “all-weather” asset class, as long-dated contracts provide predictable cash flows and inflation protection. In 2022 Global Listed Infrastructure outperformed the broader global equity and fixed income markets, driven by improving company fundamentals. In this outlook, we explain why we are optimistic that listed infrastructure companies can outperform in 2023.

Traditional investment strategies unraveled in 2022 amid geopolitical and energy crises. As 2023 gets under way, these negative trends have started reversing, giving our Corporate Credit team comfort about the prospects for the European investment grade credit market in the months ahead.

Welcome to 2023! At the start of the new year, bonfire rituals across the globe celebrate the time for renewal. Our Global Corporate Bond team have evaluated perspectives for the market by asking themselves the ten most burning questions for the year ahead – and finding the answers.

The markets are still unimpressed by the approaching recession. This is the case even though aggressive interest rate rises, an inverse yield curve, the global “contraction” status of the Wave, and the similarities between the current market environment and 1989 as highlighted by our risk model all clearly suggest that 2023 is likely to see economic collateral damage.

Is a bleak Christmas awaiting us? Not so, we hope, taking our cue from Shakespeare, whose "winter of discontent" line in Richard III continues with "made glorious summer by this sun of York". Already now, some bond segments look attractive, and the entire asset class could shine next year, Vontobel’s multi-asset experts believe.