It’s been a rather fascinating few months in finance-land. On the surface, little has happened – economic data has been relatively ‘as-expected’ and the markets have been quite benign. But under the bonnet, things have shifted quite meaningfully.
We’re all excited about the prospect of the rate of inflation reducing. Remember however, this doesn’t mean the price of things falling… it simply means a reduction in the rate of increases.
Happy new year everyone… I think most investors will be pleased to see the end of 2022...
It wasn’t a year to be a hero – capital preservation was the priority. It might well be the key this year also – whilst volatility presents opportunities, it’s still no time to be a hero.
2022 goes down in history as one of the worst ever. You might find this confusing – equity markets didn’t have a “terrible” year, especially Aussie shares. But for the global bond markets, it was a year with few precedents.
The failure of Credit Suisse is a bit of a shock, but to many finance people it’s not exactly a surprise – Credit Suisse developed a reputation for being “accident-prone”. You might not have heard of Silicon Valley Bank, who's failure in our view is much more meaningful. That’s because the failure of Silicon Valley was due to a number of key factors – factors that are relevant to all banks and will linger for some time. Is this the start of a new Banking Crisis?