The attached note reviews the performance of investment markets over the last 12 months and takes a look at the outlook for the next 12 months.
The key points are as follows:
- 2021-22 was a rough year for investors as high inflation, rising interest rates and recession fears impacted.
- Shares could still fall further as interest rates continue to rise and recession risks are high. However, inflation pressures are showing some signs of easing which may take pressure off central banks from later this year.
- Some key things for investors to keep bearing in mind are that: share pullbacks are healthy and normal; selling shares after a fall locks in a loss; share pullbacks provide opportunities for investors to buy them more cheaply; and to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise