Easing supply bottlenecks could mitigate inflationary pressures, but durable increases in housing costs and wages could mean higher inflation for longer.
While we bid farewell to an eventful 2021, it is worth taking a moment to reflect on the past 12 months. I would like to share these 10 insights that I believe will continue to impact financial markets in the new year.
- Earnings matter
- Fed hikes expected to be limited
- Chinese regulatory policy is a big deal
- Is elevated inflation structural?
- Growth versus value
- Investors are clamoring for alternatives
- US politics, all sound but no fury
- Stock selection is important
- Credit market fundamentals are supportive
- US dollar strength
As we welcome 2022, we will continue to monitor these market themes and provide updates accordingly.
Tim Murray, capital markets strategist in the multi‑asset division at T. Rowe Price.