Midyear Outlook: Growth – But New Risks – Ahead

Global Market Strategist Esty Dwek discusses prospects for growth, inflation, and evolving risks in the second half.

Global Market Strategist Esty Dwek offers insights on growth, inflation and new risks ahead as the global economy reopens.

  • 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.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions.

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Investors should fully understand the risks associated with any investment prior to investing.


Related Articles

Natixis Strategist Midyear Outlook

Experts in the Natixis Investment Managers family say the biggest risk facing investors in the second half of 2021 may be no risk at all.

Expansion Phase Continues: Investment Outlook July 2021

Economic growth appears favorable for credit and equity markets in 2021, says Loomis, Sayles & Company’s Senior Macro Strategies Analyst Craig Burelle.

  • July 16, 2021
Gen Z: Who Else?

Jens Peers, CFA* CEO and CIO, Mirova US elaborates on the Generation Z and identifies key characteristics and trends, he also highlights some possible scenarios how it may impact other generations going forward

The Fed and Fixed Income Markets: Midyear Outlook 2021

Fed moves, volatility, and real yields in the second half are analyzed by Loomis, Sayles & Co. Full Discretion Co-Head and a Senior Sovereign Analyst.