Our latest Investment Outlook & what markets are pricing-in
Capital cycle: how the household and business spending cycle responds to higher interest rates and prices will be a key factor in determining both growth and inflation outcomes over 2022/23. Equity markets have been volatile in recent months as investors gauge these economic and industry impacts.
For example, we estimate that US real GDP growth will slow to around 1.5% by the end of this year, with a rising risk of recession.
Analyst estimates of future corporate earnings are declining but remain at the higher end of our expectations over the next one to two years, considering rising economic risks. This means we have a marginally negative view on the range of equity return outcomes over the shorter-term.
To stay up-to-date and receive additional special feature reports from WTW on global capital markets, please contact Sander Gerritsen.
