January 6, 2023
United States:
It’s Going to Get Worse for Stocks Before It Gets Better
The US Federal Reserve’s commitment to higher interest rates and the potential for a recession in 2023 will combine to damage corporate earnings—damage that likely will cause the stock market to revisit its bear-market lows, warns Jurrien Timmer, director of global macro at Fidelity Investments.
Timmer joined the What Goes Up podcast to discuss his outlook for the year, and explain why he thinks bonds will resume their role as a source of protection for investors in balanced portfolios. His take on stocks? This year “is going be kind of a choppy, sideways market where we’re going to revisit the lows maybe once or twice as the fear grows that there’s an earnings wave coming.”
Europe:
Euro-Zone Inflation’s Sharp Drop Masks Underlying Pressures
Euro-area inflation returned to single digits for the first time since August, fueling hopes that the bloc’s worst-ever spike in consumer prices has peaked.
Asia:
India Set to Lose Fastest-Growing Major Economy Tag in FY23
India is set to lose its fastest-growing major economy tag this year, as growth took a hit from weakening demand at home and abroad.
Gross domestic product will grow 7% in the fiscal year ending March, according to the first official estimate released by the Statistics Ministry Friday. That compares with a 6.8% expansion forecast by the Reserve Bank of India, as well as the median estimate in a Bloomberg survey of economists.
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