The equity outlook for 2023
US equities are the most-appealing equity option for investors in 2023, according to Amundi.
In a survey of Amundi’s chief investment officers, 47% said they expected equities would be the best-performing asset class in 2023 while 28% expected cash to perform best.
Over half said they expected US equities would perform best this year, far greater than the 15% who expected Chinese and European equities to perform. Just 5% expected to allocate to Japanese equities.
“Equities, in our view, will offer entry points during the year. Start cautiously, favour US stocks and the quality/value/high dividend tilt, but be ready to add Europe and China stocks, and also cyclical and deep-value ones to play the rebound.
“The shift to profit downgrades makes the case for the US over the Eurozone for now but non-US equity is expected to outperform later in the recovery stage.
“Defensives should continue to outperform a while but looking into granularity, some quality cyclicals are worth considering.”
It recommended investors began with US equities followed by global equities and selective emerging markets equities in Q2 and Q3 and then end with the year with adding deep-value equity opportunities and small-cap equities.
However, there were concerns US could enter into a recession in the second half of the year.
AUTHOR
Laura Dew
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