Investment Outlook July 2022: markets need to deal with an inflation hangover

This monthly commentary gives a roundup of global markets and trends.

In this edition:

• Financial markets are digesting the end of government and central bank stimulus packages
• The US S&P 500 index has entered a bear market, dragged lower by sectors more sensitive to higher interest rates such as technology
• Government bond prices have also declined sharply to reflect a sudden shift in outlook from the major central banks
• Equities could recover from current levels, if inflation peaks soon and companies continue to deliver healthy earnings