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Our views 04 July 2022

Q2 2022 review: Rising yields and hard landing woes

5 min read

The second quarter of 2022 proceeded much as the first, with central banks ramping up rate hikes to combat inflation, led by the US Federal Reserve (Fed) which undertook the biggest rate hike since 1994, an increase of 75bps.

This hawkish stance provided bond yields with reason to rise further and led to further derating of expensive growth stocks, pulling global stocks lower. Balanced funds, investing in only these two asset classes, have suffered their worst six months in more than 50 years.

Read in full: Rising yields and hard landing woes

Past performance is not a guide to future performance. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.