Opportunities on the Horizon: Investing Through a Slowing Economy

| WEALTH OUTLOOK 2023 | MID-YEAR EDITION | 3 Foreword J IM O’DONNELL CEO of Citi Global Wealth I’m excited to introduce Opportunities on the Horizon: Investing Through a Slowing Economy, our 2023 Mid-Year Wealth Outlook. In this edition, we lay out our expectations and highlight key investment themes to consider for the remainder of the year and beyond. While 2023 has brought its share of challenges, we also see it as a year of change and opportunity. Inflation is gradually easing, but the US Federal Reserve continues to raise interest rates, leading to an economic slowdown. We expect a “rolling recession” in the US, while other regions gradually emerge from recent shocks. Meanwhile, there is a surplus of cash sitting on the sidelines, waiting to buy the dip. As inflation subsides, we anticipate the US Fed will shift from interest rate hikes to cuts and a potential recovery in 2024, unlocking more potential opportunities for investors. Keeping portfolios fully invested remains important, and there is a lot you can do to preserve and grow your assets in the interim. In this Outlook, David Bailin, StevenWieting and our Investment Strategy team offer insights to capture higher bond yields, shift to more defensive and income-oriented equities and shift to diversify currency exposure. We also explore potential opportunities that may come from ongoing trends like the rise of artificial intelligence or nearshoring. Timely guidance is even more valuable when markets are volatile. In addition to our long-form report, we have prepared a series of short videos and a brief implementation guide for your convenience. Your relationship team can then suggest suitable strategies. Throughout these tumultuous times, we are proud to serve as your trusted partner and guide.