2023 Outlook: Goodbye TINA (There is No Alternative)

By Crescent Team

Key observations from our 2023 Outlook:

• Our capital market forecasts increased across all asset classes, most materially in fixed income given the change in yields over 2022.

• The three themes we see driving the market, Persistent Volatility, Moderating Inflation and a Bear Market Bottom, will come to life over different time periods in 2023 and beyond.

• Year-over-year we are adding to high quality fixed income and high yield primarily by reducing dynamic bonds and increasing U.S. mid and small caps from U.S. large caps. We remain modestly overweight to non-U.S. equity but are not adding to the position.

Our 2023 Outlook contains a look at financial market conditions, our 10-year capital market assumptions, and our investment themes for 2023.