2022 has not only been a challenge for investors. War in Ukraine, which just a year ago would have been unimaginable, inflation at a level not seen in about 30 years (mainly due to soaring energy costs), and the central banks tightening interest rates at a pace unprecedented in decades. Weakening economies in Europe and the US have wreaked dire consequences on the markets. For the first time in decades, stocks and bonds have fallen in the same year – and hugely so. Throughout 2022, the sharp rise in interest rates led to significantly higher discount rates, which in turn caused a plummet in stock markets. Cyclical and growth-oriented sectors suffered the most from this. The big US tech stocks, such as Amazon, Alphabet, Apple and Microsoft, experienced losses of 30-50%.
Read more in the Strategy Update from the fourth quarter 2022.
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