The prices of almost all asset categories dropped in 2022. Broad measures of the two largest U.S. asset classes—stocks and bonds—both posted double-digit losses for the first time since 1926, making portfolio diversification a major challenge.
A handful of primary factors combined to create this challenging market backdrop over the past year. These include high inflation, tightening monetary policy and higher interest rates, slowing U.S. and global economic growth, and geopolitical turmoil. Looking ahead, how these factors evolve will be critical to the 2023 outlook.
In it's 2023 Outlook paper, Fidelity's Asset Allocation Research Team (AART) examines the Top Five Trends to watch this year -- offering its expectations for what's in store in the months ahead and discussing potential investment implications for investors.
Authors:
Dirk Hofschire, CFA, SVP Asset Allocation Research, Fidelity Investments
Cait Dourney, CFA, CBE, Research Analyst, Asset Allocation Research, Fidelity Investments
Collin Crownover, PhD, Research Analyst, Asset Allocation Research, Fidelity Investments
Jake Weinstein, CFA, Research Analyst, Asset Allocation Research, Fidelity Investments
Lisa Emsbo-Mattingly, CBE, Managing Director of Research, Fidelity Investments
Andrew Garvey, Research Analyst, Asset Allocation Research, Fidelity Investments