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9 Dec 2021

Market Cycles: 2022 Outlook

History doesn’t repeat itself, but it does rhyme’ is a famous quote by Mark Twain.

It has been a bizarre year and a half since the COVID-19 pandemic crushed asset prices in March 2020.

Is it over?

Not quite but we are in the recovery cycle following on from a bust and it appears to be moving in a similar pattern to past recovery cycles.

The research points to a slowdown in growth asset returns in 2022 which is likely given our expectation that inflation will only edge upwards. However if inflation and interest rates do take off materially then 2022 will be an economic disaster for both growth assets and defensive assets.

Click for charts.

The future is always full of unknowns so remember what Benjamin Graham taught and that is to not speculate. Instead remain invested according to your appetite for volatility and when fear and panic take hold, only then react by buying more quality assets at discounted prices.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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