As 2022/23 begins, investment performance remains volatile
31 October 2022
The fight against inflation continues to affect investment returns as a new financial year begins. Ed Tomlinson explains.
Several months into a new financial year and superannuation investments continue to endure the same volatile performance we’ve seen throughout 2022.
In both Australia and around the world the value of investments steadily climbed in July but became fickle as we progressed through August, with that intensifying in September.
The reasons for this uncertain performance are the same ones we’ve seen all year.
Essentially, it’s higher inflation and sharply higher interest rates that’s causing the trouble. Investors continue to react to these forces by selling investments they feel could be at risk, forcing the value of shares and other assets down.
In the table below you can see how smartMonday has performed: stronger in the long term compared with negative short-term results.