Interest rates are rising. The Australian government 10-year bond has more than doubled from 1.2% last August to the current 3%. However, for context, this directional change comes a full forty years after rates peaked at 16.4% in early 1982. Investment markets have enjoyed the tailwind of generally falling rates for a long time, and many participants in the world financial markets have never experienced rising rates in their entire investing career.

‘Would You Mind Explaining That?’ 
Asked Damien who recalled that the last time he’d faced ratios was at school and in his first year at university.

There has been more uncertainty and trepidation in the last two years than any period in recent times, caused by the COVID-19 pandemic and all the associated health, social and economic implications. Yet investment markets performed remarkably well during most of this time, seemingly favouring the longer-term growth potential, bolstered by aggressive stimulatory actions, over the shorter-term issues.