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.

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