WARREN BUHAI: While companies are making record margins equities are in for tough times
Government stimulus and pricing power amid disrupted supply chains have run their course
21 August 2022 - 18:13
The first half of 2022 was traumatic for investors. Just as the global economy was rebounding from Covid-19 the war in Ukraine sowed chaos through financial and commodity markets and worsened existing inflationary pressures.
Central banks are under pressure to act, despite being ill-equipped to cool supply-side inflation. Volatility has increased across most asset classes and can be expected to remain elevated if inflation persists. We have seen some of the worst first-half returns for equities and bonds in many decades, but there may be more to come...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
This article is free to read if you sign up or sign in.
If you have already registered or subscribed, please sign in to continue.
Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.