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Arch Capital Quarterly Market Review – With Dr Steve Garth
Dr Steve Garth joins us for a quarterly market review.

The first quarter of 2022 has been eventful with interest rates on the rise, inflation increasing and the war on Ukraine having an impact on markets.
The Australian market came off in the start of the quarter with the fear of rising interest rates and inflation. There was some recovery in February, but towards the end of the month, the war on Ukraine started and uncertainty set in. In March, the US Federal Reserve announced its rise to interest rates, and the market improved. Overall the Australian market finished 2.2% positive for the end of the quarter.

Australia’s market performed well as the rising interest rates were positive for the banking sector and we’ve been experiencing a commodity boom. However, other international markets finished in the negative. Europe, because of the war and the US mainly because of interest rates and tech stocks. However, markets are still up for the 1 year return.

Bonds were negative for the quarter (which is rare) due to the expectations around inflation and interest rates. Rising interest rates means bond yields go up and thus bond prices come down. With this being said, we don’t know what the bond markets will do, but we do know that the market has fully priced in its expectations so the markets will change when the expectations change.

It’s important to stay disciplined with your investments and remember it’s not timing the market, it’s time in the market.

All information contained in this video is general in nature.


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