Market Wrap - March 2022
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The war in Ukraine overshadowed financial markets throughout the month, but hopes of a breakthrough in peace talks lifted sentiment towards risk assets. Solid gains among US-listed stocks helped the MSCI World Index rise more than 3%.
The Budget boost for low to middle income earners, in particular, was designed to improve the Government’s approval ratings ahead of May’s Federal Election.
Other forecasts released alongside the Budget provided further grounds for optimism. Officials expect unemployment to fall to 3.75% later
this year – from 4.0% currently – and annual wage growth to rise above 3% for the first time in a decade.
If these forecasts prove accurate, the Reserve Bank of Australia is more likely to follow other central banks and start raising official
interest rates in the months ahead.
Many investors become concerned when volatility occurs in global financial markets – particularly about the impact on their superannuation and other investments. In times like these, it is important to understand the causes of market movements and how to minimise your risk.
Prices on everyday essentials like food, petrol and medicine have increased significantly, impacting us all. Managing these price hikes is even more difficult when you’re living on a fixed income. We unpack how we got here and set out some things you can do to increase your buying power.
Inflationary forces continued to intensify in key regions, which suggested inter- est rates could be raised more quickly and more aggressively than previously anticipated. The likelihood of rising borrowing costs also appeared to spook equity markets, which performed poorly over the month.
