Q4 2022 Global Markets Review & Outlook

Inside, you will find a summary of market activity and our market outlook.

• Global Market Recovery is Near or Underway: Global equities’ Q4 rebound demonstrates how a better than expected reality can quickly reverse market drawdowns. This also creates a path for material upside where growth likely proves more resilient and enduring than the current, dour forecasts expect.
• Overly Depressed Investor Sentiment Supports Coming Rebound: Universally dour sentiment, driven by concerns on inflation, energy crunches, the Russia-Ukraine War and a variety of other factors has significantly lowered investor expectations, allowing room for the new bull market to grow.
• US Politics Provides Clear Path Forward for Markets: Divided US government historically fuels a positive three quarter stretch for equities—the three quarters starting October 1 in a midterm year were positive 92% of the time, with average returns of 20%. Similarly, the third year of a US president’s term historically has the highest frequency of positive returns of the four-year cycle.