Market Notebook

by | Dec 12, 2021

Discussion – 

Global equities moved higher last week while bonds appeared to remain in a wide consolidation pattern. 

Equity market participants appeared to put Omicron in the rearview mirror, likely estimating little impact on global economic recovery. If Omicron is in the rearview mirror, then inflation could be said to be squarely in the headlights. Inflation data came in quite hot last week, increasing fears that inflation will move higher for longer.

Given the possibility of continued inflation concerns, it is likely prudent to remain underweight bonds in most portfolios.

All the best in the week ahead!