With respect to the year 2022, the good news was that the world largely emerged from Covid, with China as a notable laggard. The bad news was that global markets got ahead of themselves during 2021, and as the sugar rush of cheap money faded with rising interest rates, stock markets had a tough time. The US S&P 500 was down almost 20%, global markets on average were down about 18%. The TSX outperformed, declining by only 9%.
From this juncture, there seem to be two schools of thought emerging about the direction of the stock market in 2023. The first school of thought says rising interest rates will choke demand so much it will cause a recession, which in turn will cause company profits and stock prices to decline even further, possibly another 20% to 30% lower. The other school of thought is that inflation may drop faster than expected, due to a weakening economy and supply chain recovery, thus causing global central banks to "pivot" to lower interest rates sooner than expected, which would likely result in rising stock markets.
Clear as mud!