Global Matters Weekly – 12 December 2022

What were you thinking?

by Tom Delic — Portfolio Manager

— A valuation discipline is designed to place the odds in your favour.

2022 has been an eventful year across financial markets, and while anything could happen during the last few weeks of December, I thought it would be worth reflecting on the extraordinary market behaviour we have seen over the past few years.

It feels as though there are numerous examples from the final throws of this cycle that could be placed under the microscope of the financial historian, decades from now. Could it be Austria’s 100-year bond that yielded 0.375% in December 2020, down over 60% since? Or perhaps US CCC rated corporate debt yielding 7.5% in the summer of 2021, a credit rating that has a long-term average annual default rate of 25%?

Market Snapshot

    • Global equities fell 2.5% on the week
    • Four European Parliament officials, including vicepresident Eva Kaili, were charged with corruption offences as part of an investigation into claims that Qatar attempted to buy influence in a key upcoming vote
    • Brent crude fell 11.1% on the week to $76.1 a barrel
    • Gold remained flat on the week at $1797.3 an ounce