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Recessions and Sharemarkets

Currently, talks of a recession seem to be dominating investment discussions.  Rising inflation and interest rates, continued China lockdowns and the war in Ukraine are all having (or have had) a negative impact on world growth.  So, we thought it might be timely to talk through what a recession is, what it might mean for future growth and the long-term impacts on investment markets.

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Investment Update

Investors could be forgiven for looking back on the pandemic years of 2020 and 2021 with fond memories because after the initial shock in February-March 2020 it was a period of strong returns and relatively calm in investment markets. This year has been anything but.

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What to do if interest rates go up

As inflation continues to challenge the economy, it’s likely we’ll see interest rates rise and economic activity slow. However, that doesn’t have to be cause for panic—higher interest rates can present unique opportunities for saving and potential portfolio rebalancing.

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Investors and recessions

When markets fall, it’s natural to want to take action to prevent further losses. Doing so Despite much talk of rising interest rates and possible recession, here are a few reasons to stay the course and stick to your long-term investment strategy.

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