This year has been full of surprises, prompting investors to reset their expectations more than once.
In January, the mood was solemn as markets were still recovering from 2022’s sharp decline, and a recession felt inevitable. But then an AI-fueled tech rally lifted the U.S. stock market, while returns in Europe and Japan proved to be stronger than expected. The lesson? Market surprises should not be surprising.
What’s next for investors as we grapple with higher-for-longer interest rates and slowing-but-persistent inflation? Here are five of the most important trends to watch as the year unfolds: