To The Moon

2022 in review

2022 was a very challenging year for the financial markets in general. What started as 'transient inflation' progressed to 'runaway inflation' and rate hikes of unprecedented proportions. To add to that, the supply disruptions brought about by the Covid pandemic and China's refusal to abolish the Covid zero policy in line withthe world. As if that was not enough, Russia decided their country was still not big enough and stirred up sentiments and history as reasons to take back Ukraine. 

The financial markets from the stock market to thr bond markets and elsewhere took it on the chin and saw massive outflows as uncertainty pervades and volatility ran riot. Many investors and their portfolios were hit along with the retreat in the major indices with the Nasdaq and SPX firmly in bear market territory. There was not really many places to take refuge in.

Now it is the end of the year and uncertainty remains. Sentiments are also bearish with many expecting the stock markets to chart furthernew lows. The good news is China is opening up at last and veering away from the Covid zero policy. That should ease supply disruptions and inflation. Now many are just fearing recession and more importantly how much of a recession. The FOMC and their plan moving forward will also be key. They have been hawkish all around and any hint towards a dovish stance will be bullish.

I am cautiously optimistic for a good 2023. January will be important to determine if the market will swoon towards a new low or will careen higher. 

I would like to thank my readers for their comments and likes and wishing you all a great year ahead!

Stay safe! 😊