Investors are facing key macro, market, and policy pivots that will shape investment decisions in 2023. Inflation remains top of mind as investors await a dovish turn from the Federal Reserve and other central banks, and a strong US dollar is creating pain across much of the globe. Yet even as recession fears loom, we see select alpha opportunities across asset classes heading into 2023.
Uniquely to Asia, Covid-19 remains a major market factor even as its influence on investments has shifted to the sidelines in other regions. This also partly explains the divergence in performance across the region. In a slowing global economy with many moving pieces to contend with, the question on Asia equity investors’ minds is how and where to find diversification and long-term growth in an environment of instability and inflation. PineBridge’s Asia equity investment leaders share insights on where they are seeing opportunities in the year ahead.
While we expect the macroeconomic environment to be more challenging in 2023, Asia looks relatively well-positioned in a global context. Subdued and largely manageable inflationary trends within many local economies will likely create a backdrop for monetary policy to move closer to neutral without being overly restrictive, with a few exceptions. Omar Slim, Portfolio Manager, Fixed Income, and Andy Suen, Portfolio Manager and Head of Asia ex-Japan Credit Research, Fixed Income, share their calibrations across Asia fixed income amidst expectations of continued return dispersion in 2023.
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