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INVESTMENT OUTLOOK

Playing the field for yield in 2023

Read about global markets and trends in this monthly Investment Outlook

The value of investments can fall as well as rise and that you may not get back the amount you originally invested.

Nothing in these briefings is intended to constitute advice or a recommendation and you should not take any investment decision based on their content.

Any opinions expressed may change or have already changed.

Published on 06 Jan 20231 minute read

This monthly commentary gives a roundup of global markets and trends.

In this edition:

  • An abrupt shift in monetary policy in response to rising inflation has seen bond and equity markets fall sharply in 2022
  • Investors are likely to remain defensively positioned in 2023, seeking out dividend-paying companies with reliable cashflows
  • Aggregate dividend yields are attractive relative to history, with the highest yields found in the energy sector but also in consumer staples and utilities
  • The UK stock market pays the highest dividends of all major developed markets, while the US is the lowest. Opportunities may also emerge in government bonds as the Federal Reserve slows rate rises.

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The value of an investment may go down as well as up and you may get back less than you originally invested.