It was a very challenging period in the markets last quarter. Concerns about high inflation and the resilience of global economic growth weighed further on equity valuations, while the accelerated upward adjustment of global interest rates continued an unhappy time for bond investors.
Overall, it was not a quarter that investors will look back on with any fondness although, for long term investors, history is more likely to record it as an annoying blip rather than a reason to make wholesale strategy changes.
The feature article this quarter takes an in-depth look at the recent performance of global bonds along with summarising the enduring rationale in support of including allocations to bonds within globally diversified investment portfolios.
Going all the way back to the “Covid quarter” (March 2020) the global economy, and global markets by association, have delivered some highly unusual results. Some quarters have been extremely positive, and others very disappointing.
However, given the much lower investment prices now available, it is not unreasonable to think the remainder of 2022 may be better than the beginning.Back to Insights