2023 Outlook

Recession, Recovery,
and Rebound

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Key takeaways

Wells Fargo Investment Institute expects a recession in early 2023, recovery by midyear, and a rebound that gains strength into year-end.

We expect earnings to decline in 2023 but see equity market gains as investors anticipate a late-2023 to 2024 recovery.

We favor U.S. large-cap and U.S. mid-cap equities over international equities and remain tilted toward quality and defensive sectors.

We expect U.S. Treasury yields to decline in 2023 as we go through an economic recession and in anticipation of policy rate cuts from the Fed.

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Top five portfolio ideas for 2023

Top five portfolio ideas for 2023

Asset class guidance

Asset class guidance

Wondering what to expect in 2023?
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The full 2023 Outlook from Wells Fargo Investment Institute
offers more insights and guidance for investors including:

  • Our full forecast for year-end 2023
  • Details on favored asset classes and sectors
  • Deeper dives into market sectors
  • More information to help guide your investment decisions

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