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16 Dec 2022

Global Industry Classification Standard (GICS): A dreadful year

GICS is made up of 11 listed market sectors and only one has made money this calendar year.

Why have asset prices fallen? Because interest rates have risen.

The risk free rate for which US 10 Year Treasury is a proxy has risen to 4.24% and this has negatively impacted 10 of the 11 listed market sectors.

You had to be in Energy to make money in 2022 and by Energy we just mean fossil fuels- oil, natural gas and coal.

Click for chart.

Oil, natural gas and coal are not the future of Energy supply and although it worked in 2022 we have significant doubt that fossil fuels are the right investment strategy over the next decade.

If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.


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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