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The outlook for financial markets in 2023 - As 2022 draws to a close, Innes Reid Founder, Mark Reidford APFS reflects on the outlook for financial markets in 2023. For those of you who have read my previous year-end messages you will know that I don’t like to look backwards as I think it is much more interesting and useful to look at what might happen rather than what already has! I am going to have to break from the norm as I need to provide a degree of commentary on 2022 for no other reason than to set the scene for 2023. 2022 was quite a year for the global economy. But there again so were 2020 and 2021; the COVID years! Inflation was spiking almost everywhere and central banks had to admit that it would not be  “transitory” but one that would potentially worsen and linger. Central Banks started raising interest rates in an aggressive manner to stand any chance of subduing the perils of inflation. But that, heightened another risk; recession, and that was considered to be more of a danger than inflation. Then the Russians invaded Ukraine bringing about awful social and humanitarian strife. It also turbo charged the economic issues at hand; supply chain shortages worsened, energy and food prices jumped and inflation surged. It was around this time that central banks realised inflation was close to being embedded and changed their view to be that inflation was the greater risk, not recession. In essence a long period of high inflation would do more med...