01/16/2023 –

2022 was a turning point, both on a geopolitical level as well as for investments. No year-end rally in December and the worst investment year since 2008. What are the lessons learned?

1. Days of cheap money are over
2. Diversification could not really reduce losses
3. Consequently, both equities and bonds lost significant value at the same time (worst year for equities since 2008, for bonds since 1927!)
4. War in Europe and geopolitical tensions as strong as never seen since the end of the Cold War
5. Highest inflation in decades and rising interest rates through monetary tightening by Central Banks in the USA and Europe

We expect 2023 to be another challenging year, but also one that offers opportunities for long-term investors. Patience and perseverance will lead to success.

 

Check out the Market Outlook 2023 from our CEO, Steffen Bauke, on YouTube.