19 Dec 2021
What is your outlook for investment markets in 2022?
At this stage, our outlook for 2022 looks reasonable but it won’t be as easy or strong as 2021. Whilst the extraordinary amount of government and central bank support provided over the last 2 years remains in the system, we are starting to see some governments and central banks slow the pace of new stimulus and/or bring forward the end of their stimulus programs as recovery/growth objectives have been achieved and inflationary pressures start to appear.
In the background, most companies have had the better part of 2 years to reposition themselves for the period ahead and make adjustments regarding any lingering Covid effects or issues in their business models. As such, we expect a compression in returns in 2022 (vs 2021) across all assets and asset classes, more volatility and dispersion (both risks and opportunities), and hopefully a year less affected by Covid and Covid outcomes. Investors will need to remain vigilant, lower their return expectations (relative to returns achieved in 2021), and ensure they are will diversified across a range of quality assets. Patience and calm are your friend in investment markets, fear and irrationality not so much.
If you’d like to discuss any of the points raised, please do not hesitate to contact us on 9324 8888.
PSK Financial Services Group Pty Ltd (ABN 24 134 987 205) trading as PSK Private Wealth, is an Authorised Representative of Charter Financial Planning Ltd (AFSL 234665). General Advice Warning - The advice and information provided in this video presentation may not be suitable to you because it is general advice that has not been tailored to your personal circumstances, goals or financial situation. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.