As we reach the midpoint of 2023, global markets have shifted from binary to balanced, from either/or investment choices to a much broader set of opportunities − which is good news for active investors.

Previously, investors could focus on a handful of large internet-related companies and disregard everything else; or borrow at close to zero percent and not worry about the consequences of free money, the threat of inflation, or the possibility that central banks might raise interest rates. Times have changed and the opportunity set has grown to include US and non-US companies, growth and value stocks, the technology sector but also health care, industrials and energy, short-term and long-term bonds, government debt and corporates.

In Capital Group’s Midyear Outlook, our portfolio managers and economists discuss the prospects for equities, bonds and economies in this new reality. With so much cash still on the sidelines, they debate whether now may be the time to consider putting it to work.

Key talking points include the macro backdrop, particularly inflation, with debate focused on whether the global economy will fall into recession. Our economists outline why they expect mild recession followed by robust recovery in the months ahead.

Meanwhile, Europe’s economy has proved resilient despite war in Ukraine, high inflation and rising interest rates and we reveal how the continent’s most successful multinational companies are tapping into revenue streams from Asia to Latin America to the US.