Written on January 7, 2022What is the outlook for equity performance relative to rates in 2022?
Equities should outperform interest rates in 2022.

Do equities still have potential in 2022?
Yes, because monetary and financial conditions will remain favorable.

Will long-term interest rates rise in 2022?
Yes, but a sharp and sustainable increase is expected in 2023.

Will volatility increase in 2022?
Yes, in all major markets.

Will reflation trades outperform in 2022?
Yes, but not all of them.

Will reflation trades be volatile in 2022?

Will the US dollar depreciate in 2022?
Yes, but mainly against currencies where there will be a significant monetary policy gap.

What are the two major risks for 2022?
The risk of economic overheating in the developed countries and the risk of the Chinese real estate bubble bursting uncontrollably. We do not believe in the risk of stagflation.

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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. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

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