Key Takeaways for Savvy Investors
What’s our big takeaway as we enter the second quarter of 2023?
The economy is showing resilience but plenty of risks are on the horizon.
While a recession doesn’t seem to be on our doorstep, cracks are starting to show in some areas of the economy and growth may be cooling off.2
That’s not a surprise given the Fed’s aggressive interest rate program.
However, there are some bright spots to consider as well:9
The jobs market remains strong in many sectors.
Inflation looks to have peaked in 2022.
Will we experience a recession in 2023?
Nothing is certain, but it seems increasingly possible we'll see at least a shallow recession this year.
More indicators are turning from green to yellow, and recession warning signs are flashing in bond markets.10,11
However, probabilities are not certainties. The economy could still avoid a recession. Or, if one comes, it could be shallow and short or be a “rolling recession” that only affects a few sectors of the economy at a time.12
Bottom line: we’re watching the data, staying flexible, and looking for opportunities amid the uncertainty.
Questions? Please reach out. I'd be happy to chat.