Macro Views

Another regional bank falls, but the markets are seeing the forest from the trees as challenges appear contained.

Moving away from an abnormal regime of crisis-era stimulus won’t be a smooth process. But the volatility should be easier to stomach knowing that the destination is likely to be a healthier, more balanced economy.

Banks and borrowers must now deal with tighter credit conditions, bringing a quicker end to rate hikes but also more economic risks.

For all the gloomy talk about the economy in 2023, stabilizing interest rates could be a bright spot for investors. But with imbalances lurking in the shadows, 2023 could be the year for higher-quality bonds, select large- and small-cap stocks, and private-market investments.