The global economy continued to recover through the latest quarter, although the recovery remains uneven across countries and sectors amid ongoing COVID-19 difficulties and congestion in supply chains.
We raised our inflation forecasts for 2021 and 2022. Although the cyclical peak may be passing, inflationary pressures seem poised to linger into next year, focusing the spotlight on central banks’ response to the changing landscape.
Emerging Markets Outlook
Emerging markets have remained in the eye of the COVID-19 storm as the spread of virus variants has contributed to an uneven recovery, notwithstanding a significant improvement in vaccination rates.
We have trimmed our EM GDP expansion forecast for 2022, driven by the likely impact of Evergrande’s difficulties on Chinese growth in 2022.
Global Capital Markets
Equity markets continue to look attractive despite recent weakness, but with moderating risk regimes, cyclical influences and earnings indicators, a more cautious stance is warranted.
Commodities continue to look attractive, although the recent price frenzies seen in certain markets are unlikely to be sustained.
This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
Images of NYSE Group, Inc. are used with permission of NYSE Group, Inc. Neither NYSE Group, Inc. nor its affiliated companies sponsor, approve of or endorse the contents of this program. Neither NYSE Group, Inc. nor its affiliated companies recommend or make any representation as to possible benefits from any securities or investments.