Investment Insights Q4 2021
After a stunning second quarter for economic growth and corporate profits as the world started opening back up again, investor optimism has been tempered. Growth is slowing down in China, the first major economy to regain its lost output, and the global economic recovery seems to be coming off the boil too. Still, we think going from great to merely good will still be good enough.
Our lead article explains that as China’s recovery slows, policymakers there look unlikely to stimulate growth by loosening either the monetary or fiscal purse strings. For the rest of the world the growth recovery seems to have peaked for the time being, but we think it’s likely to remain buoyant by pre-COVID standards. To be sure, some companies and sectors will be more vulnerable to global labour and supply disruptions, and we discuss what factors to look out for in determining how profits might be affected.
This quarter we also consider an often-overlooked side of environmental, social and governance investing – it’s not just what is made that matters, but how it’s made.
We hope you enjoy this edition of InvestmentInsights.
Chief Investment Officer