Why was 2022 one of the worst years on record for equity markets, what happened, and what does the future hold for investors?
The world was still reeling from the supply chain and logistics issues caused by CV19. Leading to an increased cost of some of the world’s basic food and supplies. For context, a 40ft shipping container in January 2022 cost $10,000. In December 2022, that plummeted to $2,127.
The Fed and The BoE had little choice but to sharply raise interest rates to try and curtail the rampant inflation that gripped our economies this year. This lead to a fierce sell-off in the equity markets at different stages throughout 2022. Creating the perfect storm for one of the worst years since the 1930s!
As time has shown us again and again, markets will recover and rally. The winners of 2022 will be those who maintain a long-term view and look to take advantage of the drop in the market by allocating any surplus capital into the stock market, where possible.
I trust you enjoy my market analysis and I look forward to speaking with you on our Annual Review meeting.
Dominic James Murray
CEO of Cameron James