What can we help you find?
Search by Topic

Your search had no results

Please try the following to find what you’re looking for:

  • Check your spelling
  • Try different words or word combinations (E.g. "fund form")

2022 year end reflections

Download a PDF of this Article
Print this page

2022 has been a rough year for investors. Considering the year in hindsight, one might retain a certain sense of irony in the way markets have performed. With the pandemic having been diffused to a manageable level and lockdowns ending in many countries, we could have hoped to enjoy easier times. So-called “transient inflation” should have subsided and there was hope amongst investors that economies would return to some form of ‘normality’. 

In this paper, Perpetual Private’s Andrew Garrett, Investment Director, reflects on the economic events of 2022 and where the opportunities lie ahead.

Tectonic changes occurred in 2022, as a long period of low and stable inflation came to an end. This has led to heightened levels of volatility in the valuations of financial assets, as adjustment to current and expected levels of interest rates filter through the contemplations of market participants. 

Heightened levels and persistence of inflation across the global economy have influenced the expectations of economic agents, leading cost pressures to become somewhat embedded. As such, central banks have felt obliged to respond, in force. Institutions from our own RBA, through to the US Federal Reserve, the European Central Bank and the Bank of England, have all increased policy interest rates at a historically rapid pace. In addition, the messaging they have been delivering, to further influence economic conditions, has swung rapidly, from supportive to foreboding.

These changes represent a paradigm shift from the past decade, causing many entrenched positions and the assumptions of investors to become dislodged. Though this will likely lead to healthier market environments as we move forward, we must endure some turbulence along the way as markets seek a consensus view of the path ahead.     


Download report


Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. This information was prepared and used by PTCo. It contains general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. The information is believed to be accurate at the time of compilation and is provided in good faith.

PTCo do not warrant the accuracy or completeness of any information contributed by a third party. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practice or law that is often complex and can change. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.