Uncertainty regarding monetary policy, inflation, and the pace at which the climate crisis is worsening are known factors that will determine the shape of investment charts in 2023. On top of that, the risk exists that an unexpected event will leave its mark. Investment Officer’s experts and columnists are clear in their expectations for this year. “The list of tough questions for 2023 is long.”
In this line-up, some of our regular columnists and knowledge share their expectations for the coming year. And thus, on which topics you can expect contributions from them in 2023.
On behalf of the editors and all our columnists and contributors, we wish you a healthy 2023!
Han de Jong, focus: economy and markets
“The list of tough questions for 2023 is long. How fast does inflation fall? How much more will interest rates rise? Can we escape a recession or not? Has the stock market priced in enough headwinds? Will increased interest rates cause the Italian government financial problems? Will we face new geopolitical shocks. Will the disintegration of the global economy continue? Those who know, may say.”
Anne Abbenes, focus area: behavorial finance
“Financial health of individuals, society, financial professionals and financial markets is under enormous pressure in these economically turbulent times. That financial decisions are driven by emotional and psychological factors is now more evident than ever. Consequently, increasing pressure from sanctions puts the emphasis on big data and ticking off lists. For guidance in financial choices, the professional needs to analyse and really know the customer based on sound methods and objective criteria. For this, financial psychological insights are essential. The challenge for 2023 is to create awareness and application of these by the financial sector.”
Edin Mujagic, focus area: monetary policy
“The key challenge within my field in 2023 will be for central banks worldwide to decide when to stop raising interest rates. The tricky part is that stopping too early risks persistently high inflation for years to come. Stopping raising interest rates too late, meanwhile, could create financial instability and lead to or exacerbate a recession. I fear that, in this uncertainty, central bankers will choose to stop too soon rather than too late.”
Willem Schramade, focus area: sustainable development
“Sustainable investing faces multiple challenges in 2023. Climate change remains the most important issue, closely followed by biodiversity, which is moving up the agenda of investors. The cost of living and social tensions are also important issues. They are also linked to climate change, because how do you achieve a just transition that is socially acceptable? All these issues add to the importance of good data, impact investing and active ownership.”
Han Dieperink, focus: trends and portfolio construction
“Due to the Great Financial Crisis, the corona pandemic and the war in Ukraine, government debts have continuously increased. Higher taxes are inevitable, while costs continue to rise due to demographics, the climate crisis and the energy transition. This also means that more and more investments in the western world will become uninvestible. Only multinationals that sell their stuff globally and can also produce globally can escape the money hunger of such a government.”
Ronald Janssen, Ortec Finance, focus area: financial advice
“Purchasing power has decreased for many people, making it even more important to make good financial choices. The cost of advice is still high, but there are more and more opportunities to get advice at a lower price. The challenge for 2023 is to enable as many people as possible to benefit from good advice at an acceptable price.”
This article originally was published in Dutch on InvestmentOfficer.nl and InvestmentOfficer.be.
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