MSCI World 2022: Performance, gold, bonds and stock markets in review

MSCI World 2022: Performance, gold, bonds and stock markets in review

According to a report by www.test.de, the MSCI World Index offers an insight into the development of the stock markets of industrialized countries. In 2022, the index recorded a loss of around 12 percent, which is among the 15 years in which it was in the red. This result highlights the performance of asset classes, with equities, particularly in Europe, and gold outperforming bonds.

The massive interest rate increase led to a real crash on the bond market, causing Euro government bonds to record heavy losses. This development is notable because bonds were considered a safe asset class. However, long-term considerations show that, despite the miserable year, bonds are still significantly safer than stocks or gold. A look at the maximum possible losses makes this clear.

The development of the stock markets, especially in Europe compared to the USA, is also interesting. Despite the strong US dollar mitigating losses for euro investors, the European market was ahead. Portugal, Denmark, Hong Kong, Great Britain, Australia and Norway even recorded positive returns, while Germany is in the bottom third with a loss of 16 percent.

Overall, it can be said that the year 2022 was challenging for the financial markets and investors must prepare for a more volatile and uncertain time. It is important to carefully analyze developments and adapt investment strategies accordingly.