Finding financial clarity in an increasingly complex world

IF THERE is one thing of which investors can be certain, it is that crises can strike at any time. From Covid-19 to the Russia-Ukraine war to the worldwide cost-of-living crisis, 2022 was marked by such events – which, with global dimensions, tend to reinforce one another.

Inflation, for example, climbed to multi-decade highs in 2022, with price pressures broadening to housing and other services. This stemmed from a combination of supply chain disruptions caused by the pandemic and the war in Ukraine, which led to a surge in food and energy prices.

Alarm bells are already sounding as we journey into 2023, with many economists and policymakers predicting a recession in the coming year. We have seen this story before. Historically, when inflation is high and central banks respond by hiking interest rates to quell inflationary pressures, the global economy ultimately caves under the weight of these higher rates.