In anticipation of the crisis: what should investors be afraid of in 2022

Assessing this risk, investors are unwittingly faced with one unpleasant fact: central banks continue to manipulate the market through their asset purchase programs. This has important implications for private portfolios.

The expansion of central bank assets began in response to the great financial crisis of 2007–2009 and accelerated when the pandemic hit in March 2020.

This monetary activity contributes to the creation of an illusory world in which supposedly safe assets, such as index-linked government bonds, generate negative returns.

In a sense, these assets can indeed be reliable, as they provide a fairly high liquidity. But despite this, they still carry a certain risk due to guaranteed losses if the investment is held until maturity. it should also not be ignored that most nominal government bonds currently show negative real returns after adjusting for inflation.