February 2022 Economic Update – “Lift Off”

The year has started as was widely anticipated, with investment markets reacting to the inflation data, and with Central Bank commentary on how they intend to address the issue. Investment markets started with a technical correction across many bourses, including the ASX. A price/earnings (PE) derating has contributed to the correction, as investment markets factor in higher interest rates. Globally, the focus is on inflation and interest rate expectations, along with key geopolitical tensions – most notably Russia/Ukraine. China is a key factor to consider, whether it is discussion on the global economy, or the current geopolitical flash points. There is all this to consider, plus it’s the start of reporting season for ASX listed companies.

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