Review of 2022, outlook for 2023. Expect a rough ride, but better returns

AMP’s Dr Shane Oliver discusses the year in review and the outlook for the new year in this edition of Oliver’s Insights.

Dr Oliver summarises the key points as follows:

  • 2022 was dominated by high inflation, rising interest rates, war in Ukraine & recession fears. This hit bonds & shares hard, driving losses for balanced growth super funds.
  • 2023 is likely to remain volatile and a retest of 2022 lows for shares is a high risk. But easing inflation, central banks getting off the brakes (with the RBA at or close to the peak on rates), economic growth likely stronger than feared & improved valuations should make for better returns.
  • Australian residential property prices likely have more downside, ahead of a September quarter low.
  • The main things to keep an eye on are: inflation; central banks and interest rates; US politics; China tensions; and Australian residential property prices.

You can access a copy of this edition of Oliver’s Insights here:

Oliver’s Insights