IN FOCUS6-8 min read

Wealth management outlook for 2023

Our investment team shares our outlook for 2023 and explains how we are positioning portfolios. We expect volatility to continue over the coming months, but we are starting to see opportunities across asset classes.



Christopher Lewis
Head of Investment Strategy, Wealth Management

"Central bankers may start to sound less anxious about inflation in 2023. But investors must still contend with higher interest rates and a deteriorating economic backdrop as the US and other developed markets fall into recession."

Economic outlook

Global economy: Our base case is for developed markets to fall into recession in 2023 before rebounding in 2024.

Inflation: Inflationary pressures could remain elevated in the UK, though we may see US inflation fall faster given greater self-sufficiency in both energy and agriculture.

Interest rates: In the near term, we expect interest rates to move slightly higher in both the US and UK. However, rate cuts could be on the cards in late 2023 as central banks shift their focus to supporting economic growth.

Corporate earnings: Analyst expectations remain too optimistic. Earnings and margins could come under pressure as the global economy slows.

Energy prices: Risks skewed to upside given potential for further supply disruptions.


Investment strategy

Equity: Remain underweight given elevated near-term uncertainty, with a preference for large-cap, higher-quality companies. Looking for opportunities to increase exposure.

Fixed income: Neutral fixed income but see increasing opportunity in both corporate and government bonds. A preference for short-dated bonds in the near term, with an eye on extending maturity to increase defensiveness.

Alternatives: We remain positive on alternatives as diversifying assets and see good longer-term opportunities in areas including real assets and commodities.

Cash: Maintaining an elevated cash position in the near term to take advantage of tactical opportunities.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.


Christopher Lewis
Head of Investment Strategy, Wealth Management


In Focus
Economic views
Global economy
Market views
Outlook 2023

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.