Tactical Investment Strategy — May 2023

May 23, 2023 — As we approach mid-year, we have recast our key outlook and strategy themes for the balance of 2023.

Key Takeaways

• A mild recession is likely in the second half, which has not been priced into risk markets.
• We see at most one rate cut toward the end of the year and then a more moderate pace than what the futures markets have suggested.
• Fixed income continues to be attractive as we have likely hit peak yields, and higher yield carry is good for returns over the medium-term.