Manhattan West is pleased to present its Q1 State of the Market Update discussing current market conditions and our views on how investors should proceed during these uncertain times.
The one thing that 2022 and the start to 2023 has taught us is this simple, often forgotten lesson: uncertainty does not mean a lack of opportunities. Yes, the past sixteen months have created high levels of uncertainty due to inflationary pressures, spiraling price and wage increases, slower growth, aggressive central bank policy, widening credit spreads, four bank failures (and counting), the ongoing war in Ukraine, and the self-inflicted debt ceiling fiasco. At the same time, many of these adverse risks have moderated as inflation has started to decline. The economy may not be at an imminent risk of sliding into a deep recession, but many indicators point to the US entering a brief, mild recession towards the end of 2023 or early 2024.
Our outlook for this year remains cautiously optimistic, and our general belief is that investors should be cautious, yet strategic, opportunists.