Have we experienced peak inflation? Have we experienced peak interest rates? Have we experienced peak employment? Have we experienced peak corporate operating margins? These are the issues investors are wrestling with as we enter the final quarter of 2022. It’s been a rough year for both stock and bond investors, and with the Federal Reserve fully focused on taming inflation it’s hard for investors to find anything to be positive about. As market participants begin to peek into 2023 they’re trying to determine how punitive the Federal Reserve has to be in order to achieve its goal of bringing inflation back down to about 2%.
It is with that backdrop and uncertainty around inflation and interest rates that we offer our outlook for various asset classes.