The new year begins with China fully opening for business after dropping zero-Covid policies, Europe flush with energy reserves and the US economy growing at an approximate 3.5% pace. Nevertheless, anxious questions about all three critical regions remain. China’s ability to control the disease outbreaks that have followed its policy change is limited, and the resulting impact on factory output could constrain economic growth for months to come. Europe may have avoided its worst fears regarding energy availability. In the United States, the most important economic numbers in these next few weeks will come from labor markets, starting with the US December employment numbers at the end of this week; all of which will have much to say about the prospects for inflation and interest rates in important markets globally. In the markets, this year will be a delicate transition year where it’s important to be mindful not to fall into a permanent bearish mindset. Corporate margin stability and profit growth are what we care more about because of their impact on equity markets. We anticipate aggregate corporate 2023 earnings guidance and performance will be below 2022 levels. We expect inflationary pressures to ease but remain stubbornly high with continued equity volatility and corporate spread widening. On the wealth planning front, we talk about the Secure Act 2.0 and outline some of the more salient provisions.
Click Here to Read the January 3, 2023, Economic Commentary
Click Here to Read the January 3, 2023, Investment Commentary
Click Here to Read the January 3, 2023, Wealth Planning Commentary
