Global equity markets recorded a strong year in 2021, with a rally in December that pared losses from November’s sell-off ensuring healthy final quarter returns. US equities carried global markets, with the S&P 500 index recording its strongest quarter for the year against the backdrop of robust consumer spending, a rebounding labor market, and monetary policy that remained accommodative.
Looking forward, our primary considerations for 2022 revolve around interest rates and inflation, COVID-19 infection waves/economic reopening, and continued progression of corporate earnings. The market three-way tug of war between reopening cyclical, risk-off, and long-duration growth continues, with the leading performers shifting frequently. In this environment, our positioning is balanced with exposure to quality, sustainable growth companies trading at reasonable valuations that we believe will perform well in this environment. In this edition of our newsletter, our first article provides an overview of Central Bank Digital Currencies (CBDC). We discuss why central banks are focused on them and their potential impact. In the second article, we examine the impact fintech is having on developing economies in Latin America and EMEA.
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.