Why investors should resist a glass half-empty view of financial markets

After a year spent under the shadow of rising interest rates, slowing economic growth and tumult on global markets , it may seem like investors have had a tough year. But Ajay Rajadhyaksha, global chairman of research at Barclays, has four good reasons why we should resist a glass half-empty view of financial markets . Despite wars in Russia and now the Middle East, home prices across the West have weathered elevated mortgage rates surprisingly well.

Two of the three largest banking failures in US history occurred in the first half of the year, and the economy shrugged them off. Financial markets have endured a without a hint of a systemic crisis, despite dire warnings to the contrary. It’s a remarkable list, and helps explain why the S&P 500 (the global proxy for risk) is up about 19 per cent for the year to date, the MSCI World Index is up 14 per cent and the local benchmark, the ASX 200, is up 1 per cent. But Rajadhyaksha also reminds us that those with a bearish view (including this columnist) need to maintain an open mind about what 2024 could bring

Investors Financial Markets Interest Rates Economic Growth Global Markets Mortgage Rates Banking Failures Systemic Crisis S&P 500 MSCI World Index ASX 200

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