Chief U.S. Economist Lara Rhame’s 10 for ‘23

2023 will see easing inflation but rising risk of a recession. Read our watchlist for 10 big ideas on the economy, the Fed and markets.

Download now
December 13, 2022 | 15 minute read

2023 starts with easing inflation but rising risk of recession. Our watchlist for the economy and markets shows why we see high probability of a recession in the second half of next year, but why it could be mild. Policy uncertainty will remain high as the Fed’s tightening cycle continues. 2022 has been a bruising year for markets, and investors may be tempted to jump back into traditional investments.

We look at what’s changed in fixed income, gauge how to time the equity market, and how to manage through volatility. Finally, we break up with the 60/40it’s time for alternatives. We expect 2023 to be a year of economic and policy uncertainty as risk of recession is high. We break down how to manage through volatility, and where to find value and diversification.  

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Lara Rhame

Chief U.S. Economist + Managing Director

Search our site