Rising costs have been a reality for much of 2021, though we anticipate the pace of increases to moderate in 2022 as energy prices and supply chain disruptions stabilize. Household and business spending are also expected to exhibit more historically normal patterns this year as fiscal and monetary stimulus are reduced (an acknowledgement that the economic recovery is well on-track).
For many investors, 2021 was a year of robust gains with the S&P 500 index returning nearly 29%, but there was significant dispersion in results across industries and geographies. Areas like emerging markets declined 3% as a category as geopolitical risk in China and pandemic-related challenges continued to weigh on these markets.
The overall environment for accepting investment risk is neutral. US Economic recovery solidly on track, and the robust nature of the recovery has led to higher prices as well as challenges supplying finished goods fast enough to meet demand.
The overall environment for accepting investment risk is neutral. US Economic recovery solidly on track, and the robust nature of the recovery has led to higher prices as well as challenges supplying finished goods fast enough to meet demand.
After being relatively muted for much of 2021, market volatility has returned this fall. The CBOE VIX Index measures the implied volatility of the S&P 500 market index and is sometimes referred to as a “fear gauge” because it measures the range of outcomes expected by investors for the stock market.
We monitor the backdrop for investing in risk assets across three primary pillars: economic conditions, asset prices, and technical considerations such as investor sentiment and price momentum. Since last month, our assessment of the environment for accepting investment did not change.
We monitor the backdrop for investing in risk assets across three primary pillars: economic conditions, asset prices, and technical considerations such as investor sentiment and price momentum. Since last month, our assessment of the environment for accepting investment did not change.
Overall Risk-Taking Score The overall environment for accepting investment risk declined one notch since last month and is now neutral. US Economic recovery solidly on track and accelerating, with the potential for short and long-term increases in energy, material,...
