Investors who flocked to online share-trading platforms during the pandemic face a white-knuckle ride this year as a host of global issues weigh on sharemarkets.
The early months of 2022 have not had the sheer, heart-stopping drama of March 2020. That’s when fears over the spread of Covid-19 saw the US stock markets shed value in a crash reminiscent of Black Monday in 1987 or the Great Crash of 1929. But investors have still had a bad start to the year – the worst since 2009, with some high-growth tech stocks experiencing 20-30% declines.
Fears over inflation and interest rates started the slide. Both are on the rise everywhere, which is bad news for sharemarkets. Inflation, which hit a four-decade high of 7% in the US last year and 30-year high of 5.9% here, eats into consumers’ purchasing power. The buying frenzy of the past couple of years, on everything from houses to iPhones, is coming to an end and even necessities such as groceries and fuel are causing bill shock.
For a long time, low-interest rates have deterred small-time investors from plonking their spare cash into low-risk assets like term deposits. Seeking higher yields, they have instead ploughed their money into higher-risk assets, such as shares, property and cryptocurrency, to get better returns. But now that interest rates are climbing again, it has made safer investments such as bonds and business loans more attractive, so investors are likely to rebalance their portfolios in their favour.
Denne historien er fra March 12 - 18, 2022-utgaven av New Zealand Listener.
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Denne historien er fra March 12 - 18, 2022-utgaven av New Zealand Listener.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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First-world problem
Harrowing tales of migrants attempting to enter the US highlight the political failure to fully tackle the problem.
Applying intelligence to AI
I call it the 'Terminator Effect', based on the premise that thinking machines took over the world.
Nazism rears its head
Smirky Höcke, with his penchant for waving with a suspiciously straight elbow and an open palm, won't get to be boss of either state.
Staying ahead of the game
Will the brave new world of bipartisanship that seems to be on offer with an Infrastructure Commission come to fruition?
Grasping the nettle
Broccoli is horrible. It smells, when being cooked, like cat pee.
Hangry? Eat breakfast
People who don't break their fast first thing in the morning report the least life satisfaction.
Chemical reaction
Nitrates in processed meats are well known to cause harm, but consumed from plant sources, their effect is quite different.
Me and my guitar
Australian guitarist Karin Schaupp sticks to the familiar for her Dunedin concerts.
Time is on my side
Age does not weary some of our much-loved musicians but what keeps them on the road?
The kids are not alright
Nuanced account details how China's blessed generation has been replaced by one consumed by fear and hopelessness.