2022 Half -Year Investment Review & Outlook

Introduction……

Markets have without a doubt had a very difficult first half of the year. Equities have seen the worst opening 6 months in over fifty years, and bonds have seen their worst drawdown in a century. Clearly, two factors have been driving this – slowing economic growth and persistently high inflation. Three major shocks this year have unexpectedly affected global growth prospects; firstly, the war in Ukraine and the unprecedented inflationary impact particularly on energy and food prices around the globe. Second, the uneven opening and closing of the Chinese economy due to Beijing’s unusual zero-covid policy. Third, and most importantly, the major central banks have been forced to tighten policy much more aggressively than was planned for at the beginning of 2022, as they desperately attempt to get inflation under control.

We understand that bear markets can be daunting for many investors. At Seaspray, we believe and reaffirm our house view that after a torrid and arduous first half to 2022 across most asset classes, much if not all of the bad news is already reflected in prices, leading us on to a potential recovery during H2 and into 2023. While the final bottom may not be in just yet for equities, buying opportunities at current prices are presenting themselves to us in a variety of sectors and will likely continue to do so over the coming weeks and months.

As we now move into H2 2022, from a long-term standpoint, we believe we are approaching a very over-sold state in equities, and we will explore this view and our outlook in detail in this market update.

To read our full review, please download here or view pdf below:

Seaspray Financial Half Year Update July 2022 (1)

 

If you would like to discuss anything raised above or would like a review of your financial position, please do not hesitate to contact us

Tel:  +353 1 70 70 000           or       info@seasprayfs.ie

Warning: The value of your investment may go down as well as up and you may lose some or all of the money you invest. Past performance is not a reliable guide to future performance. Investments denominated in a currency other than your base currency may be affected by changes in currency exchange rates.

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Copyright Seaspray Financial Services Ltd 2022

This material is approved for distribution in Ireland by Seaspray Financial Services Ltd .It is intended for Irish retails clients only and is not intended for distribution to, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. Seaspray Financial Services Ltd Ire (“SFS”) is regulated by the Central Bank of Ireland.

Where SFS wishes to make this and other Seaspray Financial Services Ltd research available to Retail clients, such information is provided without liability and in accordance with our terms and conditions that are available on the SFS website.

No report is intended to and does not constitute a personal recommendations or investment advice, nor does it provide the sole basis for any evaluation of the securities that may be the subject matter of the report. Specifically, the information contained in this report should not be taken as an offer or solicitation of investment advice, or to encourage the purchased or sale of any particular security. Not all recommendations are necessarily suitable for all investors and SFS recommend that specific advice should always be sought prior to investment, based on the particular circumstances of the investor either from your SFS investment adviser or another investment adviser.

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Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. Investments denominated in foreign currencies are subject to fluctuations in exchange rates, which may have an adverse affect on the value of the investments, sale proceeds, and on dividend or interest income. The income you get from your investment may go down as well as up. Figures quoted are estimates only; they are not a reliable guide to the future performance of this investment.

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It is noted that research analysts’ compensation is impacted upon by overall firm profitability and accordingly may be affect ed to some extent by revenues arising other Seaspray Financial Services Ltd business units including Investment Management and Corporate Finance. Revenues in these business units may derive in part from the recommendations or views in this report. Notwithstanding, Seaspray Financial Services Ltd is satisfied that the objectivity of views and recommendations contained in this note has not been compromised. Nonetheless Seaspray Financial Services Ltd is satisfied that the impartiality of research, views and recommendations remains assured.

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Each research analyst responsible for the content of this research note, in whole or in part, certifies that: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research note.

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EON.

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