GAM's Active Thinking 06 January 2023

With humans driving a nature crisis on a scale not seen for 10 million years and the talks tasked with solving it delayed four times, a lot was resting on COP15 in Montreal. GAM Investments’? Stephanie Maier ?examines whether the biodiversity conference met expectations.

Central bankers are looking to the future and how current policy is likely to impact future inflation. In terms of action to date, the Federal Reserve (Fed) has done more, having hiked rates by 375 bps at the time of writing, while the Bank of England (BoE) has raised rates by 290 bps.?

Catastrophe (cat) bonds and insurance-linked securities (ILS) experienced a tremendous amount of spread widening in 2022, setting up for what we think could be the best investment environment in the history of the ILS market for 2023.?

In 2022, Asian equity was hit by the combination of rising interest rates, the strong dollar and China’s Covid restrictions. For 2023 we believe Asian regional leadership could shift to Northern Asian markets such as China and South Korea, given the stretched valuation gaps and potential macro drivers such as China’s reopening.

In our 2023 Outlooks David Dowsett, Global Head of Investments, highlights eight charts he thinks may signal the direction of markets in 2023, and a number of our investment professionals across our key capabilities give their outlook for 2023, including Stephanie Maier?on sustainability.

For more expert insights visit our website?gam.com/our-thinking.