2 years ago

What to expect in the financial market during the second half of 2022

Gulf Insider catches up with Yves Bonzon, Group Chief Investment Officer and member of the Executive Board at Swiss Wealth Manager, Julius Baer to discuss their secular outlook, what’s to come in the financial markets, and advice for investors for the second half of 2022. The 2022 market decline has been extremely broad-ranged, from safe-haven bonds to equities. What do you predict is next? The market decline during the first half of 2022 was a broad-based reset for the new paradigm that resulted from the geopolitical situation in the wake of the war in Ukraine. This can be summarized as the ‘end of the era of supply abundance in the Western world’ (cheap labour, capitals, raw materials, energy, cheaply manufactured goods, etc.). For three decades, we were living in a state where supply was never a problem. The central banks stepped in to support the market during every single shock that the Western world has experienced. In the wake of the Ukraine war, the reaction function involved the central banks beginning to change. In the midst of a shock such as this, for the first time, we saw the federal reserve tightening interest rates, monetary policy, etc. This is how […]