The past quarter has been a very poor one for investors, with markets biased downwards, but with several cross currents which were difficult to navigate.
Most major asset classes exhibited losses during the quarter. There were two major reasons for this. Firstly, global inflation data showed inflation was rising much higher than expectations, causing world financial markets to fear interest rates would have to rise higher and more swiftly than had been anticipated.
Secondly, the Russian invasion of Ukraine has significantly increased geopolitical instability, with fears that this invasion may lead to further global tensions, and instability across broader regions. Furthermore, Russia and Ukraine had important roles in the supply of energy and food to the rest of the world, compounding inflationary concerns.