A look at 2023 from the world's largest fund BlackRock

BlackRock, the world's largest fund, predicts that the era of the Great Moderation, characterized by stable economic activity and inflation, is over. They anticipate a new period of higher macroeconomic and market volatility, including a predicted recession, which will cause central banks to tighten policy and control inflation. As a result, BlackRock suggests being tactically underweight in developed market equities. However, they expect to have a more positive view on risk assets in 2023, but do not foresee the sustained bull markets of the past. Therefore, a new investment playbook will be necessary in the coming years.