Q3 2022 Global Markets Review & Outlook

Inside, you will find a summary of market activity and our market outlook.

Q3 again tested investors’ patience globally as a midyear rally gave way to new bear market lows late in September. However, we see many reasons to believe markets will shift positively as we move through Q4 and into 2023.

  • Global Markets Look Primed to Recover: Global markets reflect well-known fears and the likelihood of severe economic problems above and beyond what is already priced in seems low. Meanwhile, positive economic factors continue to be largely ignored.
  • Dour Investor Sentiment Supports an Unexpected Recovery: Depressed sentiment, driven by concerns on inflation, global monetary policy, China’s lockdowns and a variety of other factors has significantly lowered investor expectations, allowing room for reality to exceed expectations, spurring a new bull market.
  • Global Markets Typically Reward US Political Gridlock: The incumbent party routinely loses power during midterm years, reducing political uncertainty and the likelihood of extreme legislation. Increased gridlock is largely underappreciated by investors and likely acts as a tailwind for global markets going forward.
*The foregoing information constitutes the views of Fisher Investments based on information believed to be reliable. There can be no assurances that Fisher Investments will continue to hold these views. These views may change at any time based on new information, analysis, or reconsideration.

Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance neither guarantees nor reliably indicates future performance.

About Fisher Investments Australasia

Fisher Investments Australasia offers a variety of Global, Non-US, and US Equity strategies for institutional investors. FIA delegates portfolio management to its parent company, Fisher Investments, a money management firm in the US founded in 1979 by investment guru Ken Fisher. Today, Fisher Investments and its affiliates oversee more than A$263 billion* in assets for over 100,000 clients globally.* Founder Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 through 2016, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 31/03/2022)

For your reference, Fisher Investments Australasia is an investment manager located in Sydney. The parent company, Fisher Investments, is based in the United States, and manages assets for large institutional clients around the world.