Inflation is at levels we haven’t seen in decades and interest rates are rising fast. The bulls are back in their pens and the bears are roaring. The last 10 years, with a minor COVID-induced blip, have been a great time for sharemarket investors. Growth stocks soared as everyone rode the rising markets to ever-greater highs. Now, things are different.
Volatility is back and investing is hard again
Central banks around the world are trying to slow their economies down and bring down inflation by tightening monetary policy. But they’re wary of tightening too much and pushing their countries into recession. This is causing great uncertainty and volatility in sharemarkets. Suddenly, investing is hard again. Fundamentals matter once more and defensive stocks are coming to the fore. In these uncertain times we are sharing more of the research and thinking of our Investment Team to help advisors and investors better position their portfolios.