In this letter, I present our 10 resolutions aimed at helping your portfolio navigate this rapidly changing environment.


1. Pick your battles – policymakers will likely drive market inflection points.


2. Think about the bigger picture – long-term returns from here should be good.


3. Stop procrastinating – plan to gain exposure and anticipate the inflections.


4. Get some insulation – add defensives and value.


5. Boost your income – seek income opportunities.


6. Cook with some new ingredients – seek uncorrelated hedge fund strategies.


7. Keep up with the news – position for the era of security.


8. Invest in what you value most – invest sustainably.


9. Learn something new – seek value and growth in private markets.


10. Spend more time with family and friends – best wishes for the year ahead.


In short, in the near term, the backdrop for risk assets is challenging: Inflation remains high, interest rates are rising, and economic growth is slowing. We therefore enter the new year with a preference for defensive sectors and strategies within equities and for higher-quality bonds.


But we expect 2023 to bring inflection points as inflation falls, central bank policy shifts from tightening to loosening, and growth bottoms. This should mean that the backdrop for investors will improve as 2023 evolves.


Investors will therefore need to stay nimble as different asset classes and regional markets try to anticipate inflection points at different times and in different ways.


For more details on our views and the outlook for 2023, see our recently published Year Ahead report, “A Year of Inflections.


And for much more on New Year's portfolio resolutions, see the UBS House View Monthly Letter, 15 December, 2022.


Main contributor: Mark Haefele, Chief Investment Officer, Global Wealth Management


Content is a product of the Chief Investment Office (CIO).