2023 Long‐Term Capital Market Assumptions

Invesco Investment Solutions has released their 2023 Capital Market Assumptions (CMAs) report which is intended to assist in the asset allocation process for investors as they begin to rebalance portfolios in the coming months. The report states that the company remains positive on their long-term capital market assumptions. Most of the 170+ assets covered in the report are expected to return more in the coming decade than they did in the last decade. As central banks have begun to unwind years of excess liquidity through quantitative tightening and rapid rate hikes, the report indicates that the only certainty is that cash has become more valuable. This allows investors to be more prudent in their risk-taking, and in nominal terms, the risk-free rate actually returns something for savers.