The business world is reporting a mood of cautious optimism about the economic global and national outlook for 2023, according to a recent survey released by JP Morgan. 59% of respondents are feeling positive about the future which is heartening. Yet, 46% of Australian business leaders are saying they expect a recession this year. This is significant and worth paying attention to.

Soaring inflation, rising interest rates, and ongoing geopolitical issues are transforming the investment landscape. Investors can be forgiven for being stressed. But when markets become volatile and unpredictable, it pays to remain focused on the fundamentals.

The current volatility in the market is being driven by several factors including geopolitical tensions between Russia and Ukraine, Omicron and a pandemic driven supply chain crisis. However, one of the key contributors for the fall, is the expectation of rising inflation. The Federal Reserve has changed its tune and has clearly indicated a rise in interest rates is imminent.