Market reflection and 2023 outlook
2022 was a year most investors will want to forget quickly. In what has shaped up to be one of the most challenging investment environments for decades, persistent inflation set the tone early in the year and finally caused central banks to begin reversing ultra-loose monetary policy. Once the decision had been made that an urgent response was required, the US Federal Reserve raised rates at the fastest pace for 30 years. With the exception of the Bank of Japan, which remains in yield curve control mode albeit with a recent surprise tweak to policy, all other major developed market central banks have been forced to follow. The war between the Ukraine and Russia, which has first and foremost been a humanitarian catastrophe, has contributed to a perfect storm for economies and global markets.
