Occasionally the Morning Porridge strikes a lucky insight on markets – this morning here are some thoughts on how 2022 markets and events may or may not develop. If they occur I shall hail myself an investment genius. If not, can we quietly forget them?
Lots of small signals, rising rates, a tech wobble, Covid vs freedom, China’s Covid crisis and the anniversary of the Capitol riot make for a rich stew of confusion in today’s markets!
As markets shake off their summer slumbers, what should we be worrying about? Lots..! From real vs transitory inflation arguments, the long-term economic consequences of Covid, the future for Central Banking unable to unravel its Gordian knot of monetary experimentation, and the prospects for rising political instability in the US and Europe.
The UN has declared a Code Red Climate Emergency. As we all know addressing climate change has enormous implications for investment strategies, but can governments collectively deliver the joined-up and effective policies required to save the planet? The jury is out…