Careers Contact Us Global Our firm Insights Capabilities Press centre SEARCH Active is: Anticipating what’s ahead 2022 outlook Agility counts in a year of disruption and divergence Going into 2022, investors will want to prepare their portfolios for bouts of volatility and lingering inflation, likely by diversifying more broadly across asset classes, styles and regions. But they should also take this opportunity to factor in the disruptive structural trends that are driving – and even upending – our expectations of the future. Economic growth seems likely to decelerate after the “base effect” rebound we saw in 2021. Covid-related uncertainty and supply bottlenecks will likely prove to be a drag on growth, as well as a continued source of price volatility. There should also be a divergence in growth figures and central bank support in various parts of the world, and the markets will likely react quickly to any positive or negative macroeconomic data. All the while, inflation seems likely to stay higher than many market-watchers expect. So what does this mean for investors’ portfolios? We invite you to explore three structural themes that are likely to play a key role in the coming year. Navigating rates Appreciating China Achieving sustainability Navigating Rates Investors need to watch the speed of interest rate adjustments, fluctuating exchange rates and shifting inflation expectations. We think central banks and many investors underestimate the probability that consumer price inflation may turn out higher than expected – and last longer than is currently priced into financial markets. While some central banks have already imposed rate hikes, and others are close behind, they are also likely to remain “behind the curve” in responding to inflationary pressures. So while inflation may creep up, we don’t expect to see an end to the decades-long era of overall low rates – which means investors must find new ways to protect purchasing power and search for yield. Read more 2022 perspectives from our experts Expand All Virginie Maisonneuve, Global CIO Equity Franck Dixmier, Global CIO Fixed Income Greg Hirt, Global CIO Multi Asset Emmanuel Deblanc, Head of Private Markets Matt Christensen, Head of Sustainable and Impact Investing DOWNLOAD THE FULL 2022 GLOBAL OUTLOOK Read more from us China’s Phase 3: a new chapter in its epic story To understand current developments in China, it’s important to see how the country is now emphasising not just economic power, but the “soft” power of persuasion and influence. The key for investors is to learn how and where these strategic priorities will translate into opportunities. 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