Citi logo
Sign On to Citi Accounts
Citi Wealth
  • Featured
    • Weekly Market Update
    • Quarterly Market Update
    • Wealth Outlook
    • Overview
    • Investing
    • Retirement
    • Family & Money
    • Personal Finance
    • Trust & Estate
    • Insurance
  • Election 2024
    • Ways to Invest
    • Investment Products
      & Services
    • Financial Planning
  • Speak with a Financial Advisor
    Call: 1-877-693-4543
  • Speech or Hearing Impaired Customers Dial: 711
  • Locate an Advisor
  • Schedule an Appointment
  • Find ATM / Branch
  • Citi.com

Citi Global Wealth Investments

Outlook 2023

Roadmap to Recovery: Portfolios to Anticipate Opportunities

Our Expectations

  • Global GDP growth: 1.7% in 2023, 2.3% in 2024
  • Shallow 2023 recession in the US, worse in Europe and UK
  • China to see recovery as COVID restrictions ease
  • US inflation falls to 3.5% by end-2023 and 2.5% by end-2024
  • Global earnings per share to fall 10% in 2023
  • Fed to start cutting interest rates by second half of 2023
  • Among the greatest risks to our outlook would be persistent 1970s-style inflation
  • By contrast, the US might avoid recession if inflation drops faster than expected
  • Other improbable risks include US-China military escalation or complete trade breakdown

Putting Cash to Work in a Higher Interest Rate Environment

Rising rates and volatile markets unsettled investors in 2022. The new higher rate environment creates potential opportunities to seek income across asset classes.

  • Difficult market conditions in 2022 increased the temptation to sit on excess cash
  • Sitting on excess cash is a risky strategy, which almost always leads to missing out on recoveries
  • We believe 2022's turmoil has created more viable opportunities for putting cash to work
  • Our expectation is for interest rates to peak and inflation to fade over time
  • We favor various short- and intermediate-term US dollar denominated bonds
  • We also like dividend grower equities from resilient industries

Unstoppable Trends Are Changing the World

Unstoppable Trends are long-term phenomena that are transforming how we live and do business. We seek portfolio exposure to these powerful forces.

  • G2 polarization intensifies
    The US-China technology trade war increases the challenges facing investors. But it also creates portfolio diversification potential
  • Greening the world: Energy security is vital
    Fossil fuel energy dependence threatens economic growth and national security. We believe this strengthens the case for the clean energy transition and for positioning portfolios accordingly
  • Deepening digitization
    We highlight a range of attractive areas including semiconductors and robotics & automation, accessible via both public market and alternative strategies
  • Seeking to boost portfolio immunity with healthcare
    Aging populations and the expanding global middle class will likely boost healthcare demand long-term. Among our favored areas are biologics, life science tools, value-based care and agetech

Building Dynamic Portfolios

  • Near-term, we emphasize quality, such as short-term US dollar investment grade fixed income
  • Likewise, we favor more defensive equities, including dividend growers
  • For suitable investors, capital markets and alternative strategies also offer potential opportunities to put cash to work
  • As interest rates peak, we expect to shift first to quality, growth equities in non-cyclical industries; cyclicals later on
  • Once dollar strength reverses, we see deep value potential in various non-US assets and currencies, such as income-producing real estate
  • Our strategic asset allocation methodology points to 10-year annualized returns of 10% for Global Equities, 5.1% for Global Fixed Income and 3.4% for Cash
  • We continue to favor exposure to the drivers of long-term economic growth

All forecasts are expressions of opinion, are subject to change without notice and are not intended to be a guarantee of future events.

Download Summary Download Full Report Watch Full Webcast (1:02:43)
man and woman chatting with advisor

Why Work with a Financial Advisor

A Financial Advisor can help you plan for big moments in your life like retirement and education. If you have more complex needs a Financial Advisor can help you with asset protection, trusts, and wealth transfers.

Learn More on Why Work with a Financial Advisor

young couple looking at a tablet

Invest the Way that Works for You

Whether you prefer to invest on your own, with an advisor or a combination of both, Citi Personal Wealth Management can provide strategies to help you meet your goals.

Learn More on Invest the Way that Works for You

Looking to Connect?

speak bubbles

Chat with a Financial Advisor

Our experienced Financial Advisors are here to help you invest for your future and plan for your short and long term goals.

Connect

headset

Speak now with our Wealth Team

Call: 1-877-693-4543 | TTY: We accept 711 or other Relay Service.

Existing clients, please sign on to schedule an appointment with your dedicated team.

INVESTMENT AND INSURANCE PRODUCTS: NOT FDIC INSURED • NOT A BANK DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE

Important Information for You to Know About Our Business and Relationship With You

We are required to deliver two important disclosure documents about our business and relationship with you:

  • Form Client Relationship Summary ("Form CRS") is a brief summary of the brokerage and advisory services we offer.
  • Regulation Best Interest Disclosure Statement and Related Information for Retirement Accounts is a more detailed description of the brokerage services we offer and our obligations under Regulation Best Interest when we make recommendations to you as your broker-dealer.

Please review both of these important documents online at http://www.citi.com/investorinfo/. If you prefer paper copies, please contact your advisor or call us at 1-877-693-4543 | TTY: We accept 711 or other Relay Service.

Citi logo

Important Information

The Market Insights commentary should not be considered a recommendation or research report. Nor should it be considered a solicitation, advice or a recommendation with respect to any investment strategy, asset allocation or particular investment. The Market Insights commentary is not intended to constitute “research,” as that term is defined by applicable regulations. The views expressed herein are those of the author and do not necessarily reflect the views of Citigroup Global Markets Inc. or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

The market and planning commentary on this site may discuss topics that are timely to current events at the time they were written or filmed. The relevance of such topics may change at future dates.

Investments are subject to market fluctuation, investment risk, and possible loss of principal.

Diversification and asset allocation do not protect against loss or guarantee a profit. Past performance is no guarantee of future results.

Please consult your Financial Advisor before making any investment decisions.

Citigroup Inc. and its affiliates do not provide tax or legal advice.

The information set forth was obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness.

The products and services mentioned in this communication are not offered to individuals’ resident in the European Union, European Economic Area, Switzerland, Guernsey, Jersey, Monaco, San Marino, Vatican and The Isle of Man. Your eligibility for a particular product and service is subject to a final determination by us. This communication is not, and should not be construed as, an offer, invitation or solicitation to buy or sell any of the products and services mentioned herein to such individuals.

Citi Personal Wealth Management is a business of Citigroup Inc., which offers investment products through Citigroup Global Markets Inc. (“CGMI”), member SIPC. Insurance products are offered through Citigroup Life Agency LLC (“CLA”). In California, CLA does business as Citigroup Life Agency LLC (license number OG56746). CGMI, CLA and Citibank, N.A. are affiliated are affiliated companies under the common control of Citigroup Inc.

©2024 Citigroup Inc. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.

Privacy | Notice at Collection | Do Not Sell or Share My Personal Information