With last year thankfully behind us, we take stock of what could go both wrong and right for the economy in 2023. We’re optimistic that 2023 will be better than 2022 for several reasons, but that’s a contrarian viewpoint.
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We maintain our 60% subjective odds that the economy will achieve a soft landing in 2023 and 40% odds that it will land hard, with a broad-based recession and no bull market resuming for stocks. Much depends on what happens with Fed policy and inflation.
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