This is our short review of markets for the year that was – 2022. For many investors it’s been a year to forget!
Despite reassurances from the RBA at end of 2021 that interest rates would not go up until 2024 (!!!) the equity and bond markets really didn’t believe that, and prices started tumbling right from the start of the year. In Australia, the first rate rise was not until May.
By the end of September, bonds saw their worst returns for generations and the Australian stock market was down -9.6% – but unbelievably by early December the ASX 200 now has a small positive return! Other equity markets have also enjoyed a rally since September are not doing as well.