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Stagflation Will Rule 2023, Keeping Stocks in Peril

  • Dollar set to extend declines, according to most respondents
  • S&P 500 seen range-bound in 2023 as earnings deteriorate
Bloomberg business news
Why 2023 Is a Year for the Pessimists
Updated on

Stagflation is the key risk for the global economy in 2023, according to investors who said hopes of a rally in markets are premature following this year’s brutal selloff.

Almost half of the 388 respondents to the latest MLIV Pulse survey said a scenario where growth continues to slow while inflation remains elevated will dominate globally next year. The second most likely outcome is deflationary recession, while an economic recovery with high inflation is seen as least probable.