Citi Global Wealth overview | | 17 Investments FiGUreS 9 AND 10. iT AND HeALTHCAre’S wHAT To Do Now? GrowiNG iMPorTANCe While investing in 2022 was deeply challenging, any one year IT Recession Share of EPS Share of Mkt Cap represents a mere “moment” in the lifetime of a portfolio. And even 40% though the economic environment in 2023 may prove to be difficult, 35 the greatest risk at times like these comes not from enduring the turbulent conditions but from trying to avoid them by market timing. 30 025 Given the high probability of recession in the US and elsewhere in 0 2023, we enter the year with a defensive asset allocation, albeit fully 5 20 &P invested. However, as 2023 unfolds we will take a dynamic approach S15 to tactical asset allocation. As markets ultimately find a bottom, f our positioning is set to evolve toward equities and alternatives that o 10 % anticipate a recovery. 5 As a first step toward building portfolios for the year ahead and 0 beyond, investors should assess their present positioning. To help our '85 '90 '95 '00 '05 '10 '15 '20 existing clients in this review, our Outlook Watchlist report can review HEALTHCARE your exposure to key sources of potential risk and return, including 20% our long-term investment themes. We can then discuss actionable 18 strategies to help you adjust your allocation for the coming year and 016 beyond. Please note this is not available to prospective clients at 0 this time. 5 14 &P12 Outlook 2023 is your roadmap to understanding the route to economic S f recovery. Let us be your partner and guide on this road to recovery. o10 %8 6 4 '85 '90 '95 '00 '05 '10 '15 '20 Source: FactSet, as of 21 Nov 2022. Charts show the rising trend of the market capitalization and earnings per share for the IT and healthcare sectors, expressed as a % of the total S&P 500 Index. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Past performance is no guarantee of future results. Real results may vary.