As 2022 gets underway, investment markets continue to be buffeted by a range of competing factors. The world is enduring another Covid-19 outbreak, with Omicron now the dominant variant almost everywhere. However, the global economy is well positioned entering the new year and the economic environment is expected to remain supportive of corporate earnings and therefore global sharemarkets in the near term. At the same time, the economic backdrop provides potential challenges for global fixed income markets.
Portfolio returns are likely to be lower and more volatile in 2022, with rising interest rates and the potential for persistent levels of higher inflation. You can find out more in Investment Outlook 2022 which, as well as an overview of global economies and markets, provides a review of the strategy and outlook for the various asset classes.
This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.