Markets are collapsing. The headlines are piercing. Investors are crumbling. In fact, investors have been selling down stocks at a rate not seen since the GFC, and depending on which metrics you use, since 1975. In the chart below I have plotted the valuation change, year on year, and you can see the absolute cliff that is valuation compression since this time last year. As quickly as we saw valuations sky rocket last year (I'm not going to go into the reasons here), valuations have fallen even quicker - 2021 was insane, and we're now paying for it.

Rates are rising. We all know this. In fact, the market has already priced in central rates at between 2%-3% depending on what time frame you are looking at. Stock markets are adjusting their valuations. Crypto has collapsed. Private Equity and Venture are probably yet to feel the full force of these devaluations. The property market is still functioning, however listings are falling and prices are falling. Who said property doesn't go down?

With a deafening roar, the US stock market ran headlong into bear territory, the S&P sinking 20% below a January peak and hitting its lowest mark since the previous January. This was on the back of US inflation data coming in higher than expected - well, that's my take anyway. The ASX has opened down almost 5% making up for a closed day yesterday. Technology shares have been leading the declines, with the Nasdaq 100 slumping about 4.5%.

Last week I wrote about Everything is Getting Crushed where I looked at all the major assets classes to see how they were performing so far in 2022. We saw that everything but Oil and Commodities were getting crushed.

There has been absolutely nowhere to hide in financial markets in 2022. Stocks and bonds are getting crushed in the face of rising rates.

We hear it each and every time - the uncertainty surrounding the election. Of course it's uncertain. That's what the future is - uncertain. If anything was certain we would not be compensated or rewarded for risk.