Midyear Outlook: Growth – But New Risks – Ahead
Global Market Strategist Esty Dwek discusses prospects for growth, inflation, and evolving risks in the second half.
- As vaccination rates increase, growth is picking up – but we continue to see divergences between the US, Europe and China.
- Fiscal and monetary tailwinds are still supporting equity markets, setting the stage for a strong second half.
- But inflation may become a new worry: Are these fears real or transitory?
- Looking further ahead, the combination of inflation and the timing of stimulus tapering could start to have an impact on earnings later in the year or into 2022.
- As economies reopen, investor trends that accelerated during the pandemic are likely to continue, which could result in growing demand for thematic investing strategies.
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