Axiome Quarterly Q2 2022

War, pandemic, and inflation. Markets have been grappling with all three of these headwinds this year, and fell further across most asset classes in the June quarter. US and NZ equity markets are down around 20% from their peak, putting them into “bear market” territory. Bonds have also suffered large declines. We don’t know how much further markets could still fall – nobody does – but with the large decline in bonds and equity prices we can say that they offer investors much better value today, and as such, higher likely returns over the medium to longer term.