2022 is likely to be an important year for investors. Against a challenging backdrop, the issues of inflation, interest rates and international policy look likely to dominate world markets. Our 2022 investment briefing explored some of the key trends expected to influence stock markets over the coming year.
Our briefing considered where markets are today in the context of the last few decades, and took a look at how the international outlook may develop over the rest of the year. The panel included Charlie Buxton, Portfolio Manager at The Fry Group and Gary Dugan, CEO of Purple Asset Management.
Our speakers explored expectations for global inflation and interest rates, with particular reference to the significant levels of debt which many countries around the world now face. As a result, many economies could struggle given the rise in interest rates needed to tackle growing inflation.
Global investment briefing 2022
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Certainly, inflation looks like it may be the watchword of 2022, with the Covid pandemic, inconsistent growth and unnaturally low interest rates key themes of the past decade. As a result, something of a correction is now inevitable, with a real sense that governments have perhaps ‘cooked the books’ for too long.
Despite this backdrop, and worrying geopolitical tensions between West and East, market conditions look encouraging, particularly for value stocks and shares, with the UK well positioned. In fact, although growth opportunities are still available, it’s likely that portfolios may need to move away from US equities and tech stocks, both of which have been favoured by investors for so long.
The briefing also touched on ESG investing, noting the ongoing popularity in this investment approach. However, it was noted that this is an evolving area and that there is still a shortage of high calibre ESG investment opportunities. As the sector matures, and the metrics by which companies are classified evolves, there are likely to be significant benefits for companies who follow truly ethical strategies.
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