What the Markets’ New Tailwinds Could Look Like in 2023

Historically, the markets bounce back nicely after sharp declines, so focusing on historically high-quality companies trading at today’s lower valuations could be a good recovery strategy.

Digital graphic display of stock market trading ups and downs.
(Image credit: Getty Images)

Editor’s note: This is part two of a three-part series about what the economy and markets could look like this year. Part one is Will Rising Interest Rates Lead to Soft Landing or Recession? Part three is Five Investment Strategies to Focus on in 2023.

In the first part of this series, we considered the potential of the Fed’s 2022 rate hikes in bringing the economy in for a soft landing, concluding that if the Fed continues to enact more aggressive hikes than expected, it will be detrimental to the economy.

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Don Calcagni, CFP®
Chief Investment Officer, Mercer Advisors

As Chief Investment Officer at Mercer Advisors, Don is responsible for setting the strategic direction of the firm's investment platform, chairing the firm's investment committee, overseeing all investment-related communications, and the prudent stewardship of the firm's assets under management. His expertise is in the areas of fiduciary oversight, economics, financial mathematics, portfolio management, corporate finance, and taxation.