17 September 2021 | Investment Outlook: Key long-term issues
That the market worries is endemic to any equity rally, yet some of these worries – and unexpected accidents – do eventually materialize. Hence, it is important to map key issues within an investment outlook. What could be the key issues next year? 1. Core inflation eventually falls back relatively quickly and far more so than expected in the US supporting equities 2. A pandemic under better control 3. A further fiscal impulse in Europe 4. A potential correction in risky assets.
What does it mean?
What we are faced with as ever is a wall of worries which should peak in H2 2022 on excessive momentum in equity markets. But behind this are secular forces steadily emerging, namely a new economy within a new climate and ESG paradigm. Significant setbacks in the Growth style are opportunities to invest selectively in this emergent paradigm of ESG.