As we enter the new year, investors have this feeling as if they’ve seen this all before. Once again, the quarter kicks off with inflation concerns dominating the investment landscape. As the Federal Reserve works to tackle inflation, worries are mounting that the U.S. economy is heading toward a recession. How stocks and bonds will react to the decisions made at the two Federal Open Market Committee (FOMC) meetings this quarter is difficult to suss out.
It is with that backdrop and uncertainty around inflation and interest rates that we offer our outlook for various asset classes.