06 Jul 2021-22 saw poor investment returns – the bad news and the good
Key Points:
- 2021-22 was a rough year for investors as high inflation, rising interest rates and recession fears impacted.
- Shares could still fall further as interest rates continue to rise and recession risks are high. However, inflation pressures are showing some signs of easing which may take pressure off central banks from later this year.
- Some key things for investors to keep bearing in mind are that: share pullbacks are healthy and normal; selling shares after a fall locks in a loss; share pullbacks provide opportunities for investors to buy them more cheaply; and to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise.
