Looking back at 2022 for markets and investors
As a new year begins, we look forward to the opportunities to help you do more with your money in 2023.
For our Investment Management team, the new year is a time for discussion with our global fund managers on what the coming twelve months could mean for markets and investors.
While there is no crystal ball to tell us what the future holds, our team will have an economic outlook going live early in the new year, which you can watch by subscribing to the True Potential YouTube Channel.
It is also a time to reflect on 2022, and what this meant for markets and investors. The key stories centred around the Russia Ukraine conflict, and rising inflation and interest rates. While these were challenging times for investors, it is worth remembering that a year is just a short time in most investment journeys. An investment is for the medium to long term, and we look ahead to what 2023 may have to offer.
Inflation & Interest rates
Rising costs were a major theme in the last year, with central banks raising interest rates to quell inflation.
Here in the UK, inflation peaked at over 10% in the year, the highest level seen in some 40 Years ofdata. There was a similar trend across the globe.
Central banks have responded, and we’ve seen some of the fastest and swiftest increases in interest rates that we’ve seen in a generation. How inflation levels evolve and how central banks deal with this will be key in 2023.
The geopolitical events in Europe had a significant impact on markets in 2022.
If we look back to the start of the year Russia invaded Ukraine bringing tremendous challenges at an economic level, a market level, but most fundamentally, at a humanitarian level.
The events in Europe fed into higher energy and food prices leading to rising inflation, particularly with the close linkage of Russia to the supply of natural gas into Europe.
The conflict is ongoing and will continue to have an impact in 2023.
Supply chains have adapted and improved since the height of Covid-19 as countries have opened up throughout the world.
One region that has stayed closed has been China. Their zero Covid policy has impacted economic growth and both domestic and global stockmarkets. Closed markets means there are restrictions or prohibitive regulation on free market activity. Open markets is the opposite, with full participation allowed in the markets.
China has begun to relax measures and this will been keenly watched by investors.
Looking towards 2023
2022 was challenging for both equity and bonds markets.
What we and our fund manager partners we work with would contend is that we’ve seen a very significant repricing of financial assets within many asset classes, but particularly within fixed income, over the course of 2022.When we look forward to 2023 and beyond, the aim is to look for opportunities to earn better returns over the years to come.
You can stay updated with what happens in markets throughout 2023 by subscribing to the True Potential YouTube Channel, where our Investment Management team will update you daily in Morning Markets. You’ll also find our in-depth roundtable discussions in the weekly Do More With Your Money show. We look forward to a good year and helping you to do more with your money.