2023 Midyear Outlook

Navigating end-of-cycle

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Key takeaways

Wells Fargo Investment Institute believes a global economic slowdown and moderate U.S. recession are likely in 2023, followed by a gradual U.S.-led recovery in 2024.

After contracting in 2023, we expect earnings to expand modestly in 2024 as the economy emerges from recession.

We favor U.S. Large-Cap over Mid-Cap and Small-Cap equities with a focus on quality and defensive positioning in sectors and sub-industries.

In fixed-income portfolio allocations, we favor remaining defensive with a barbell strategy that favors both short term and long term.

Top five portfolio ideas for 2023

Top five portfolio ideas for 2023

Asset class guidance

Asset class guidance

Cover of Wells Fargo Investment Institute 2023 Midyear Outlook.

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

  • Our full forecast for year-end 2023 and year-end 2024
  • Details on favored asset classes and sectors
  • Deeper dives into market sectors
  • More information to help guide your investment decisions

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