Opportunities on the Horizon: Investing Through a Slowing Economy

Citi Global Wealth Investments | WEALTH OUTLOOK 2023 | MID-YEAR EDITION | 2 FOREWORD 3 OVERVIEW 1.1 Our 2023 Mid-Year Wealth Outlook 5 1.2 Recession, recovery: A journey unfinished 10 1.3 The value of strategic asset allocation: Mitigating portfolio risk during times of investor stress 19 1.4 A guide to investing through a slowing economy 24 CURRENCIES 2.1 As US dollar dominance ends, currencies may drive returns 27 BONDS ARE BACK AGAIN 3.1 Bonds are Back Again: Where to find potential fixed income opportunities now 34 A SEQUENCE OF EQUITY OPPORTUNITIES 4.1 Finding value beyond narrow leadership 39 UNSTOPPABLE TRENDS 5.1 Putting national security interests ahead of economic cooperation: The evolution of G2 deglobalization and its implications 44 5.2 Unusual investment opportunities in an atypical energy cycle 50 5.3 Generative AI: The beginning of (another) technological revolution 57 REGIONAL PREVIEWS 6.1 Asia: Economies get a boost from the late reopening, weaker dollar 62 6.2 Europe: Selective opportunities amid modest growth 65 6.3 Latin America: Favorable financial conditions, cautious central banks 67 6.4 North America faces a rolling recession 69 GLOSSARY 72 CONTENTS