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2023 Midyear Market Outlook

Finding the signal through the noise


Investors must differentiate between useful information and random market fluctuations in the second half of 2023, as stubborn inflation, tightening financial conditions, a US regional banking crisis, and fading economic growth in the developed economies could affect financial asset performance.

Three themes to watch in the second half of 2023

THEME 1

Economic Resilience Tested

THEME 2

Bonds are Back?

THEME 3

A Focus on Earnings

 

WEBINAR

Webinar replay: 2023 Midyear Market Outlook

Listen to our Chief Investment Officers, Arif Husain, Sébastien Page, and Justin Thomson as they share insights on the major themes expected to impact markets over the coming months, investment opportunities and potential risks for the remainder of 2023.

Investment Leaders

Arif Husain


Head of International Fixed Income and 
Chief Investment Officer

Sébastien Page

Head of Global Multi-Asset and
Chief Investment Officer

Justin Thomson

Head of International Equity and 
Chief Investment Officer

Ritu Vohora

Investment Specialist,
Capital Markets

Regional Outlooks

China Outlook

Recent softness is unlikely to derail 2023’s recovery. We continue to find investment ideas in domestically listed A-shares.

Japan Outlook

Despite heightened macro uncertainty, Japan’s TOPIX Index hit a 33-year high in May—an indication that the Japan story is gaining momentum.

2023 Midyear Tactical Allocation Views

As of May 31, 2023

The tactical allocation views are prepared by the T. Rowe Price Multi-Asset Division.

These views are informed by a subjective assessment of the relative attractiveness of asset classes and subclasses over a 6- to 18-month horizon.

Outlook remains uncertain due to tight financial conditions, a slowing economy, and elevated valuations. However, a resilient labor market, services sector strength, and positive sentiment around AI are providing support.

 

 

Interest rate volatility could remain elevated as central banks continue to balance persistent inflation and growth concerns.Credit sectors continue to offer attractive valuations with broadly supportive fundamentals.

 

 


VIDEO

2023 Midyear Market Outlook Summary

Investment Specialist Ritu Vohora shares important key takeaways from this year’s Midyear Market Outlook in under two minutes.

 

 

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This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

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202306-2949000  

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