FNBO Releases '2023 Investment Outlook'

Press Release

Release Date: January 10, 2023

FNBO Releases ‘2023 Investment Outlook’

OMAHA, Neb. — First National Bank of Omaha (FNBO) released the 2023 Investment Outlook. Prepared by the bank's Investment Management division, the Outlook provides a comprehensive evaluation of the U.S. and global economies and explains how FNBO tailors portfolios to meet financial goals. This year's Outlook discusses the current economic climate and key trends impacting investment portfolios, outlines capital market assumptions and highlights various investment objectives.

"In this year's Outlook, we address important, timely questions and provide information on how successful investors may attempt to navigate challenging market environments," said Kurt Spieler, Chief Investment Officer, FNBO. "We believe bonds and stocks offer the highest potential for future returns as compared to the last several years. However, we believe market volatility is likely to persist in the short-term."

• Among the Outlook's outlined perspectives:
• Contrarian investors who buy after market downturns may earn higher returns.
• For investors seeking to lower portfolio risk, an opportunity has surfaced to revisit asset allocation.
• Persistent inflation remains an economic headwind.
• The Federal Reserve aggressively increased interest rates as unemployment remains low.
• Consumption may soften due to negative real income and the risk in consumer credit.
• Economic deceleration is apparent in confidence and activity leading indicators.
• FNBO believes a U.S. and global recession is probable.
• For income-oriented investors, bond yields are at attractive levels.
• Corporate profits are displaying signs of weakness and are highly correlated with stock prices.
• Equity valuations are reasonable if earnings are resilient.
• FNBO prefers bonds over stocks but believes equities offer long-term return potential.

"Based on our assessment of the macro-environment, the bear market offers an opportunity for contrarian and long-term investors to add equities exposure at more attractive valuations," said Spieler. "At FNBO, we endeavor to understand individual financial goals and help guide clients to the appropriate asset allocation. History shows that investors are rewarded when they adhere to their financial plan and stay invested through market cycles."

To read the full text of the FNBO 2023 Investment Outlook—which outlines in-depth data, analysis and perspectives— visit 2023 Investment Outlook.

About FNBO

First National Bank of Omaha (FNBO) is a subsidiary of First National of Nebraska, Inc. (FNNI). FNNI and its affiliates have nearly $30 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota, Texas and Wyoming. Founded in 1857, FNBO has maintained its commitment to helping build strong communities for more than 165 years. Learn more at FNBO.com and connect with us on Facebook, Twitter and Instagram.

For information contact:
Sally Christensen, 402-871-1933
schristensen@fnbo.com