Citi Global Wealth Investments CONTENTS UNSTOPPABLE TRENDS 3.1 The transformative power of unstoppable trends 51 FOREWORD 4 3.2 A greater separation between East and West: OVERVIEW G2 polarization intensifies 55 3.3 Energy security is vital 59 1.1 From the desk of the CIO: Our Wealth Outlook 2023 6 3.4 Deepening digitization 64 1.2 Roadmap to recovery: Markets lead, the economy follows 10 3.5 Digitization and the growth in alternative investments 68 1.3 Expect the unexpected: How we might be wrong 18 3.6 How unstoppable trends are redefining 1.4 Outlook Watchlist 2023 23 real estate 72 1.5 Better long-term returns ahead 25 3.7 Seeking to boost portfolio immunity with healthcare 77 PUTTING YOUR CASH TO WORK IN A HIGHER RATE ENVIRONMENT REGIONAL ASSET CLASS PREVIEWS 2.1 It is time to put excess cash to work 30 4.1 Asia: Broader re-opening to enable 2.2 Pursuing portfolio income with short-term bonds 33 regional recovery 82 2.3 Why dividend grower “tortoises” 4.2 Europe: Bracing for winter recession 88 may be core holdings 39 4.3 Latin America: Selective opportunities 2.4 Why capital markets are more important amid cheap valuations 93 than ever 42 4.4 North America: The hunt for quality and yield 98 2.5 Alternative investments may enhance cash yields 45 GLOSSARY 104