Wellspring Investment Outlook - 2Q'23

The U.S. is entering the contraction phase of the economic cycle. If inflation persists, the slowdown could be extended as central banks remain hawkish longer than the market currently anticipates. With the Fed continuing to allow its balance sheet to roll off and the Treasury likely to add to its general account, liquidity conditions are expected to be negative, along with slowing corporate earnings growth. A risk-off approach that protects capital and favors low-beta investments with high-quality equity and credit is recommended.

Click "Market Outlook" to download our Q2 2023 investment outlook.