Investment Outlook 2022 – Part 3

Quarterly, Annual, and Long-term Investment Outlooks

With inflation at multi-year highs and central banks set to tighten, the year ahead poses some complex problems for asset allocators. In the United States, bond yields are up and tech stocks trading on the Nasdaq have experienced a rout in January, sending the index down 5% so far this month.

What will be in store for global markets for the remainder of the year? This list contains the latest round of quarterly, annual, and long-term investment outlooks produced for early 2022. 

Q1 2022 Quarterly Outlook (PGIM Fixed Income)

In their 2022 Q1 Outlook, PGIM Fixed Income stresses the need for relative-value analysis in order to capitalise on opportunities for alpha across fixed income sectors.

House View 2022 Outlook (Aviva Investors)

For compliance reasons, this paper is only accessible in certain geographies

Aviva's 2022 Outlook contains 82 pages of insight into key investment themes. Their macroeconomic commentary and analysis is split into 10 global regions and is followed by an in-depth multi-asset outlook section. Their present allocation stance is to underweight credit and slightly overweight equities.

2022 Global Outlook: Thriving in a new market regime (BlackRock)

For compliance reasons, this paper is only accessible in the United States and Canada

We are entering a new market regime unlike any in the past half century: BlackRock expects another year of positive equity returns coupled with a down year for bonds. The powerful restart of economic activity will be delayed – but not derailed – due to new virus strains. Central banks will start to raise rates but remain more tolerant of inflation. They see inflation settling above pre-Covid trends – we’re going to be living with inflation. They favour equities over fixed income as a result, but have dialed back their risk-taking given the wide range of potential outcomes in 2022.

Long-Term Capital Market Expectations 2022 (Franklin Templeton Investments)

For compliance reasons, this paper is only accessible in the EMEA region

Franklin Templeton's annual capital market expectations report gauges 10-year return expectations for multiple asset classes. Their return expectations for fixed income assets remain low, but are marginally higher than the previous year.

2022 Global Market Outlook (T. Rowe Price)

For compliance reasons, this paper is only accessible in certain geographies

The authors suggest that the present recovery is strong enough to combat headwinds such as new coronavirus variants. Additionally, global corporations are likely due for higher than average capital expenditures in 2022.

Sustainable Asian Bonds Outlook 2022: Emerging opportunities (Manulife IM)

For compliance reasons, this paper is only accessible in certain geographies

Credit selection and bottom-up research could be the keys to mitigating risks in sustainable debt investments in Asia in 2022. The absence of greenium and a strong sustainable debt issuance pipeline also bode well for Asian fixed income investors.

Investment Views for Uncertain Times – Market Outlook 2022 (Candriam)

For compliance reasons, this paper is only accessible in certain geographies

Candriam's 64-page 2022 investment outlook is organised into thematic sections on topics covering a very broad range – from inflation expectations to progress on cancer research.

2022 Outlook: Which way to the recovery? (Wells Fargo Investment Institute)

In this 28-page report, Wells Fargo Investment Institute assesses the multi-asset opportunity set, providing recommendations on equity sectors and sub-sectors likely to outperform in 2022. They recommend U.S. assets, a relatively cautious attitude towards fixed income, and other asset classes that perform well in inflationary environments.

2022 Outlook: Inflation, risk appetite, and China (Absolute Return Partners)

Beginning with a discussion of whether certain 'Outrageous Predictions' could prove to be more plausible than originally thought, this year's Absolute Return Letter covers the author's three key concerns for 2022.