Outlook on Europe in 2023

Outlook — Lazard Asset Management

January 09, 2023


Lazard's Outlook series provides a forward-looking view, over the short, medium, and/or long term, of asset classes, sectors, regions, or countries from the view of Lazard Asset Management. In this edition, LAM portfolio managers share their outlook for Europe in 2023. 


  • The stock market revival of recent months seems premature, given the full effects of 2022’s aggressive hikes in interest rates have yet to be fully felt.

  • We believe forecasts of a shallow recession in the US and Europe are overly optimistic.

  • However, the headwinds facing European economies and companies are arguably more priced into stock market valuations than in other developed equity markets, while Europe is likely to exit recession first.

  • Easing inflation led to a rebound in European fixed income markets in Q4 2022, ensuring a tough year for investors ended on a brighter note.

  • The repricing of European bonds in 2022 means yields are potentially providing attractive entry points—2023 could be an interesting year for the asset class.

Click here to read our Outlook on Europe in 2023.

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