In the view of economists at JP Morgan, stocks has pre-empted the macro troubles set to unfold in 2023 and look increasingly attractive.

The bull case for equities

“While we are not calling the bottom for equity markets, we do think that the risk vs. reward for equities in 2023 has improved, given the declines in 2022.”

“With quite a lot of bad news already factored in, we think that the potential for further downside is more limited than at the start of 2022.”

“Importantly, the probability that stocks will be higher by the end of next year has increased sufficiently to make it our base case.”