UBS says recession in 2023 will be an inch deep but a mile wide

Global economic conditions will shift next year and that's going to flip which markets and sectors underperform, according to the chief strategist of UBS Investment Bank. Bhanu Baweja told CNBC's "Squawk Box Europe" on Wednesday that between one-third and half of the countries the bank covers globally are facing a recession. "It's an inch deep but it's a mile wide," he said of the expected recession. "Global growth is at 2% and that is not priced into stocks." UBS expects November's U.S. core consumer price index, which excludes volatile food and energy costs, to come in below 0.3% for the month. As such, Baweja said market expectations for a restrictive Federal Reserve will come down somewhat, helping companies' price-to-earnings ratios. Earlier this month, a lower-than-expected inflation print in October spurred a cautious market rally. Baweja pointed to the S & P 500 's underperformance this year so far, down 15.5%, relative to Europe's Stoxx 600 's 9.6% fall. "It's because this…

This story appeared first on, 2022-11-25.
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