Investors look to clear the slate after a volatile year in the markets, with both global equities and bonds declining against a surge in inflation, waning economic growth, geopolitical tensions and monetary tightening. We take a look at market conditions, valuations and investor allocations as we assess what might be impactful in 2023.
In the realm of investing, a factor is any characteristic that can explain the risk and return performance of an asset. For over 40 years MSCI, starting with Barra, has researched factors to determine their effects on long term equity performance. MSCI has developed Factor Indexes and Factor Models in consultation with the world’s largest investors and has research backed by four decades of Factor data compiled by a 200+ global research team.