This breakdown of returns into their composite components illustrates and compares the contribution to performance in 2022 and 2023. The pullback in equities in 2022 stems from a reset in valuation multiples, while earnings in developed economies remain in good shape. Meanwhile, equity returns in 2023 have so far been driven by multiple expansion while earnings outlook has continuously been downgraded across both emerging and developed economies amid the recession narratives and growth concerns.