As with any hard journey, before we set off on our excursion through 2023, we’ll assess the gear we’ll need in our pack to reach our destination. After all, we are entering fresh and forbidding terrain. Persistently high inflation, high rates and high volatility are creating an investment landscape quite unlike any we’ve faced in decades. But don’t despair. With the right preparation, we will be equipped for the wilds of 2023.  

Of course, we’ll need a trusty compass. To help our clients plot a faithful course to their goals, we’ve asked the CEOs, CIOs and strategists from J.P. Morgan’s USD 200-plus billion Global Alternatives platform to provide this 12- to 18-month perspective on the trends influencing markets, as well as their most promising investment ideas and their thoughts on the underappreciated risks investors may face.

The time to pack is now. The trek is sure to be filled with opportunities from acute dislocations that only the fleet footed and well prepared can seize. We see potential in the converts market, private market secondaries, special situation debt and real estate lending, among others. 

We expect perils, too, perhaps most obviously the return erosion caused by inflation. Fortunately, alternatives offer specialized gear for our kit – think infrastructure and transportation investments – for protecting from inflation. Finally, alternative investments provide the tools you’ll need to capture the megatrends of our time – climate, technology and biotech.

We wish you safe passage. Please let us know if we can be of help in implementing any ideas presented in this Outlook or if you need additional information from any of our contributors.

On behalf of J.P. Morgan Asset Management, thank you for your continued trust and confidence.

Anton Pil

Global Head of Alternatives