SWM Advisers Update
JANUARY 2022 What’s ahead? It seems to be the consensus that interest rates will rise at some point this year from their record lows. The million-dollar question is when and by how much? The markets have already experienced volatility this year as it tries to price this in. Last week the Australian market suffered steep falls in anticipation of the path to higher global interest rates. Domestically the RBA has indicated an unwillingness to raise rates before 2024 and has said inflation is not near the levels of the US. From a portfolio perspective, a long-term approach with portfolio diversification remains your best defence, as opposed to trying to time the market or positioning for a single event. Despite 2021 experiencing pandemic woes, inflation concerns, monetary tightening, and geopolitical tensions, last year was great for diversified investors, with balanced growth funds delivering strong returns. 2022 carries across many of last year’s concerns and global growth is likely to slow however there are reasons to remain optimistic that this year will deliver further continued growth for diversified investors.
Copyright (C) 2022 Stretton Financial Group Pty Ltd t/a Stretton Wealth Management*. All rights reserved. Our mailing address is: |