S&W The Pulse

Last year was a story of big numbers: seven billion vaccines delivered; a further $9 trillion in stimulus and global growth at an impressive 5.9%. This helped add $13 trillion to the value of global stock markets. However, this growth came with an inflationary sting in its tail. 1Consumer price inflation rose to multi-decade highs in the UK, Eurozone and US, pushed higher by accommodative policy, pent-up demand and supply chain difficulties. This saw treasuries deliver their 6th worst performance this century.1Continuing economic growth, with businesses and households in good shape, plus restocking from record low levels, should support the stock market in the year ahead. However, greater volatility is possible: parts of the market look highly valued, while economic growth could disappoint if inflation proves persistent. Source:1 Refinitiv, 4 January 2022