Comercia - 2023 Market Outlook

Comercia's 2023 Market Outlook predicts an environment of modest price pressures that will require a less aggressive tightening path from monetary policy-makers. Fixed income investors can look forward to possible improvement in yields after experiencing price depreciation. The equity markets are projected to shift their focus from P/E multiple contraction to margin erosion and decline in profit forecasts. Last year's market was characterized by rising inflation, sluggish economies, and tighter monetary policies, ultimately leading to a significant weakening of equity markets, particularly those in the growth and technology sector depending on low discount rates.