FPWM Investment Strategy Committee Q2 2023 Tactical Views

After a very difficult year for investors, markets rose over the first quarter of 2023, despite the collapse of Silicon Valley Bank and Credit Suisse’s malaise, which caused a sell-off in bank shares. Markets rose on receding recession worries, better inflation numbers and hopes of easier monetary policy and a pivot by the US Federal Reserve. We could see some more volatility over the coming months caused by uncertainty about the trajectory of inflation and interest rates, but lower equity valuations may mean that markets are less vulnerable to risks, including a recession, earning downgrades or higher interest rates.