Despite a great deal of pessimism at the start of the year, the first half of 2023 has turned out to be much better than expected for many global equity investors, with the MSCI World Index returning 15.4% in US dollars to 30 June 2023. This strong outcome, albeit concentrated in specific market segments, would not have been predicated just a few months ago when headlines were pointing to an imminent global recession and the world’s major central banks were aggressively hiking rates. Importantly, this demonstrates the futility of trying to time markets based on prevailing sentiment and short-term predictions, and informs our view of remaining invested in quality companies over the long term.
While the path ahead is still riddled with uncertainties, as always, investors are encouraged to remain focussed on their long-term strategies and not be swayed by short-term concerns. Regardless of what transpires over the next six months, the reality is that the equity market remains one of the best places to grow wealth over the next 10 years and beyond.
Read the latest Prosperity by Private Clients, which gives a monthly market and economic update as well as an overview on recent developments within some of the companies held in our model portfolios.