1.1 FROM THE DESK OF THE CIO: Our Wealth Outlook 2023 For investors, 2022 will not be missed. The year presented a series of firsts and worsts. The tragic war in Ukraine hugely distorted global food and energy supply chains, further emphasized the divide between the US and China – see A greater separation between East and West: G2 polarization intensifies – and accelerated the onshoring of critical business infrastructure. The Fed instigated its fastest set of interest rate increases ever. In doing so, it responded to the inflation it caused by adding excessive liquidity to counteract the effects of the pandemic. As the safe- haven US dollar strengthened, goods almost everywhere else became more expensive, adding to global central bank tightening pressures. These are all sources of instability. In this environment, equities and bonds declined in tandem by the most ever in 2022, with joint losses of about 20% at the low point. DAVID BAILIN Cash outperformed almost every asset class. As we look ahead, Chief Investment Officer however, we need to remember that markets lead economies. The and Global Head of Investments poor market returns of 2022 anticipate the economic weakness Citi Global Wealth we expect in 2023 – see Roadmap to recovery: Markets lead, the economy follows. Citi Global Wealth overview | | 6 Investments