Market update – February 2023

It’s fair to say that 2022 was a very difficult year for investors!  

Most asset classes lost money last year. In some cases, supposedly low risk assets like bonds lost as much – if not more – than riskier assets like equities. This is highly unusual.  

However, things are now looking that little bit brighter because:  

• Economic data has largely been a bit “less bad” than many people had expected 
• Inflation rates are coming down around the world, and in a lot of cases quicker than expected 
• As a result, central banks might be about to pause their increases in interest rates 
• This means equities and bonds, which had priced in a much uglier picture, have recently recovered somewhat  

We are cautiously optimistic about the future but there is much uncertainty around the short term, whether that be the unpredictability of global geopolitics or even the weather!  

However, we think there are very good reasons to believe the long-term picture looks very positive.  

Mike discussed all of this in our latest Market update event, fill in the form below to access the recording.

If you are an Equilibrium client, you will be able to access this on demand via the client portal.