Santander's Market Outlook 2023

Santander's Market Outlook 2023 report suggests that growth and inflation will continue to be causes for concern in the next year, but markets are showing signs of a comeback. The report predicts that if central banks confirm peak inflation in Q1 2023, it may lead to a pause in interest rate hikes, which would set in motion a recovery process in fixed-income markets. The recovery of more cyclical assets such as equities is expected to begin in H2 2023 if central banks announce lower interest rates. The report highlights that it is more important than ever to balance a short and long-term vision when managing investments. Investors should not ignore the need to be invested in real assets and in themes related to innovation and sustainability.