Equity Performance …… January to June 2023
Despite high volatility, stubborn inflation, interest rate hikes and the war in Ukraine, the ALSI and MSCI (USD) grew by 5.9% and 13.9% respectively in the first half of 2023 (see graph below). This highlights the potential for growth in uncertain times, and the importance of staying invested in order to benefit from it.
Source: Bloomberg, Ninety One SA
Silicon Valley Bank (SVB) and Credit Suisse … A Perspective
The situation with Silicon Valley Bank and Credit Suisse has caused some concern. Please see a link to an article by Peter Conniff, Head Trader at Castlestone Asset Management for commentary (some of you are invested in Castlestone in your Offshore Funds).
Click on the link to open the article Silicon Valley Bank and Credit Suisse
Disclaimer: Castlestone cannot guarantee the content that is provided in the banking update.
Crisis = Opportunity = Forward Looking
Market crisis over the last 25 years
Click on image to enlarge.
Source: Nedgroup Investments
Expected Asset Class Returns
Source: Coronation Fund Managers
Taking a Brief Look Back at 2022….
QUARTER 1 (Q1)
Importantly, Central Banks started to raise interest rates to curb global inflation.
The War in Ukraine triggered a negative supply shock to a global economy already struggling with supply-side shortages due to the pandemic … thereby reducing growth and further increasing inflation.
Notably, the MSCI World Index fell 5.2% in USD terms.
The Importance of Doing Nothing
As mentioned before on this blog see “Staying Invested Vs Timing Markets” in times of market volatility it can be tempting to deviate from one’s investment plan but knee-jerk reactions are not the best ways to navigate the uncertainty as illustrated in the graphs below by Ninety-One.
Source: Ninety-One