14 Jan 2022

Global Asset Allocation Viewpoints, 1Q 2022 - Pandemic recovery: Past the peak

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Thumb: Global Asset Allocation Viewpoints 1Q 2022

Peak activity and earnings are in the past, but earnings still look set to be healthy this year. Resilient consumers imply a continuation of the strong demand conditions of 2021. As a result, pricing power should be sustained, partially offsetting the impact of rising wages on company profit margins. Meanwhile, greater pandemic resilience indicates a gradual normalization of supply chains, which will provide a long-awaited boost to inventories, production, and corporate profitability. The global growth engine will be slower in 2022, but still positive and above trend, providing support for positive earnings growth and remaining a tailwind for risk assets. Download the 1Q 2022 Global Asset Allocation Viewpoints to read our perspectives.