Q1 outlook: New year, new narrative
Even though 2022 has begun with an abrupt change in the macro narrative, stoked by the Fed, we hold the line on our bullish outlook for risk assets.
Last year was a great period for risk assets, but not an easy one for investors. Our morning meetings were packed with discussions about the pandemic, inflation and China.
This year is likely to be even more challenging, with lower expected returns and higher expected volatility, as Tim explains in the article. Indeed, the first quarter has begun with bang, with an abrupt change in the macro narrative stoked by the US Federal Reserve (Fed), which market participants now expect to be more hawkish than previously anticipated. Nevertheless, we hold the line on our bullish outlook for 2022.