Mid-Year Outlook 2023

Mid Year Outlook 2023

Investing in the new economic climate

For financial professionals only

Peter Dalgliesh Managing Director, PIMContents

How did we do?

What’s in store?

So where are the opportunities?

Stay disciplined and don’t despair

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Welcome

Peter Dalgliesh
Managing Director, PIM

In a nutshell

Index returns better than expected
Core inflation proving stubborn
Interest rate rises higher than predicted
Credit is squeezed and cracks are appearing in labour markets
Quality, dividends and selectivity come to the fore
Sticking to a long term investment plan is sensible and pragmatic

It’s been a challenging first half of the year. We’ve had persistent inflation, rising interest rates, regional US bank failures, corporate earnings downgrades, continued tightness in the labour market.

Yet index returns have held up better than expected. Parmenion Investment Management MD Peter Dalgliesh gives his expert assessment of the situation.

Led by the US, EU and Japan, growth assets have relatively outperformed so far in 2023. Globally diversified defensive assets have also delivered positive absolute returns. But before assessing the outlook, let’s look back. Were our projections for 2023 pretty much on the money?

Source: FE FundInfo (30/01/2022 - 16/06/2023)