As 2022 approaches, we along with Schwab’s market strategists anticipate:
- A rebound in economic activity
- Growing participation in the labor market
- Persistent inflationary pressures
As the world shifts into a growing sense of normalcy and the chaos of the past year draws to a close, uncertainty about the future remains ever present. Despite the World Health Organization’s findings on the new omicron variant and negativity around inflation and supply chain issues, the new year holds promise. The Leading Economic Index compiled by Charles Schwab points to a positive economic landscape for the coming year, with consumer spending rising largely due to fiscal and monetary stimulus.
Outlook
Schwab’s Chief Investment Strategist, Liz Ann Sonders, states, “For now, the Fed plans to complete tapering before it begins hiking rates. Assuming no significant hit to economic activity from omicron, or a retreat in inflation pressures, we do expect the Fed to up the pace of tapering heading into 2022.”
Given the present economic landscape, we believe the key to investing in the new year is to employ a disciplined and long-term oriented process. This includes global diversification and regular rebalancing.
Although corporate earnings may slow in coming quarters, corporations are expected to remain strong and despite the myriad of risks outlined above, our investment outlook for the coming year is a positive one.
Click here for additional insights and in-depth details of Charles Schwab’s 2022 market outlook.
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Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance. Forecasts contained herein are for illustrative purposes, may be based upon proprietary research and are developed through analysis of historical public data.
The information here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.