LAST year was humbling for economists and investment strategists alike. It began with an “imminent” recession and ended with equity markets near all-time highs.
Historic rate hikes fuelled a compelling narrative that, at best, anticipated both a weak economy and disappointing returns. To be sure, legitimate concerns underpinned this narrative. Post-Covid-19, amid resurgent inflation, the world was still emerging from an era of “unprecedented everything”.
But the inherent pressure to take a stance on the economic trajectory led many investors to find comfort in collective concern and embrace the prevailing storyline.
For many investors, human nature took the wheel. So, what can we learn...
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