A world in transition

The year ahead

2022 will go down as one of the most challenging years for investors. A global pandemic in 2020 brought the world to a halt, with governments providing financial support for their economies and people. 2021 was characterised by the reopening of global economies and a year of strong economic activity.

The post-pandemic boom triggered supply-chain challenges. These, together with a generous fiscal response (government support) to the pandemic – particularly in the US – led to inflationary pressures. Russia’s invasion of Ukraine exacerbated the issue as energy prices rose sharply across the globe.

With inflation rising rapidly, central banks around the world began raising interest rates, leading to huge falls in equity and bond markets. 2022 was a big reset for the world and its financial markets