With volatility rocking the markets, how should investors be positioned? Megan Horneman, our Chief Investment Officer, shares her perspectives on the market’s correction and outlook for 2023 in this CNBC interview. Megan explains how the 2022 rally was largely driven by P/E multiple expansion, anticipating Fed rate cuts next year. With the Fed committed to taming inflation through sustained hawkish policies, a revaluation of overly bullish projections is now underway.
Key topics covered:
- Why high consumer debt and rising rates signal a pending pullback in spending
- How a mild recession in 2023 could slow demand and help curb inflation
- Why do 2023 earnings growth estimates of 10-12% seem unrealistic given the recession outlook
- How rapid Fed rate hikes could expose hidden risks and market vulnerabilities
- Where opportunities are emerging for prudent investors as valuations turn attractive
As uncertainty lingers, Verdence Capital Advisors’ strategies aim to reduce volatility while selectively targeting undervalued assets that may benefit from a cyclical recovery. Gain insights from Megan Horneman’s experience navigating market cycles and investing with a long-term perspective.