Editor’s note: This is the final part of a three-part series about what the economy and markets could look like this year. Part one was Will Rising Interest Rates Lead to Soft Landing or Recession? And part two was What the Markets’ New Tailwinds Could Look Like in 2023.
In part two of this series, we looked at the upsides of the Fed’s year-long offensive against inflation, the market’s grounding in fundamentals and the new tailwinds for investors. As we move closer to a normalized post-pandemic environment, most indicators are still pointing to a recession, and the Fed is eyeing a soft landing. Earnings growth should drive a rebounding stock market in 2023. And, as J.P. Morgan notes, “Relatively healthy consumer and business balance sheets ... could help keep some momentum.”
