Meketa is focused on four themes for 2023 that we believe will shape the markets’ performance. Our themes are interconnected as markets and economies recover from the economic and inflationary shocks of the past two years. The pace of recovery may be uneven, and uncertainties remain regarding inflation, monetary policy, and underlying economic resiliency as the global economy tries to return to pre-pandemic trends. We anticipate that some of the key themes that drove markets in 2022, such as inflation, monetary policy, a strong US labor market, and China, will continue to have a meaningful role in 2023.
We will also likely see the full economic impact of aggressive policy tightening on growth, with many investors fearing the potential of a recession. Although the economic impact of the global pandemic and the war in Ukraine may be moderating, they still have the power to deliver unexpected outcomes that may also influence markets. Before we review our four themes, we will set the stage by briefly reviewing 2022.