As we approach 2023, please find the following articles from the BTC Capital Investment Team, discussing top economic themes and their potential impact in the New Year.
The two dominant themes running through the U.S.
We presume all cannot wait for 2022 to say goodbye. U.S. equities, as measured by the Russell 3000 Index, are currently down 19.8% year-to-date (YTD), which may be its worst calendar-year drawdown since 2008 ( 37.3%).
2022 has been a year of transition away from unprecedented quantitative easing where central bankers flooded markets and government coffers with money, to the start of the tightening of the monetary policy belt.
The two dominant themes running through the U.S. economy in 2022 have been sluggish GDP growth and elevated inflation. From the growth perspective, this year has been the tale of two halves with the first two quarters seeing negative results for GDP followed by a positive third quarter and what is anticipated to be a continuation of upside growth in the fourth quarter.