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Highlights
The ASX 200 declined over 10% in 2021/2022.
It was the third financial year of loss for the ASX 200 in the last ten years.
The All Ordinaries index fell over 11%.
The Australian share market reported a loss of 12.15% in the first half of 2022 as it battled a host of challenges triggered by interest rate hikes, rising consumer prices, geopolitical tensions, and looming recession fears. While the ASX 200 declined over 10% in 2021/2022, the All Ordinaries index fell over 11%. It was the third financial year loss of ASX 200 in the last ten years.
Additionally, the ASX 200 closed nearly 14% lower from record highs seen on 12 August 2021. Similarly, All Ordinaries was down over 14.5%. It came at a time when commodity prices rose.
The Australian share market may grow at a modest pace over 2022, according to a report by CommSec.
“The Aussie sharemarket is tipped to fall by 7-9 per cent in 2022; lift 7-9 per cent over 2022/2023; and rise 5-8 per cent over calendar 2023,” the report stated.
In such a scenario, investors would need to tread carefully and devise strong stock market strategies in the second half of 2022 to boost their investment portfolios. On this note, let’s discuss three things which investors should look at doing during the second half of the year:
Don’t forget to be calm
It is clear by now that stock markets worldwide are likely to trade on a volatile note in the coming days. But it doesn’t mean that the same volatility should be mirrored by the minds of investors and traders. Stock market volatility can easily impact psychologies of investors and hamper the decision-making process. The best way to get through challenging times is to be calm.
One of the most influential investors of all times and mutual fund pioneers.Jack Bogle once said that investors should not try to move in and out of the stock market during difficult times as their emotions can defeat them totally.
Don’t be randomly greedy
Legendary investor Warren Buffett once famously said, "Be fearful when others are greedy and greedy when others are fearful." But it doesn’t mean one should be greedy without any plan. Excessive greed can be detrimental to one’s interest in the long run. While Buffett’s Berkshire Hathaway has purchased more stocks recently than it has done in a while, the firm hasn’t been aimlessly greedy. The firm has bought a total of 16 stocks so far in 2022 and a majority of these are value stocks. Thus, it shows how selective Buffett has been during these challenging times.
Long-term outlook
Most investors advise to buy stocks with a long-term view. It certainly doesn’t mean that such a strategy would help you to beat the market in the second half of 2022. But it would certainly boost your prospects of staying relevant to the stock market in the coming ten years or beyond.
