Going into 2022, many observers (including us) had a positive view on the economy and markets in general. This was predicated on a receding pandemic – which appears to be playing out. On today’s economic horizon, a different view emerges.
We expect that Russia's actions will reverberate through the world for years to come. While the next few weeks are unpredictable, if we think about the longer term, some possible consequences come into sight.
We found that despite strong year-end results, 2021 was full of surprises. Although 2022 may not bring us fully back to normal, we think it will be another big step towards normalcy, which is positive for the economic outlook.
The U.S. Travel Association estimates that, due to inflation, this year travellers will pay almost 5% more for food and drink, nearly 20% more for lodging, and an eye-popping 24% more for transportation than they did last fall. It’s not all bad news though.
In this stage of our economic recovery, our attention turns to how the pandemic has affected supply chains globally, and what impact this is having on our markets worldwide.
The heatwave that Canadians recently experienced is somewhat of a precursor to what’s shaping up to be a scorcher of a summer from an economic standpoint. With 67% of Canadians having received at least one dose of the vaccine and provinces lifting even more restrictions, this will unleash many economic catalysts that we’re looking forward to.
Though recent lockdown measures have come into effect across Canada, we view this as merely a detour on the gradual return to normal. Our Quarterly Outlook Commentary reflects this sense of optimism as we gain a greater understanding of what the new normal will look like — and when it may arrive.
When investing, it’s easy to follow a direct approach, only focusing on what’s currently performing well and ignoring everything else. Looking beyond our limited perspectives can allow us to uncover comparatively favorable opportunities, such as the abundant potential of investing in international and emerging markets.
In the first commentary of the year, we discuss key developments that will be influencing the markets around the globe in 2021.
We discuss some reasons why we believe the luxury goods sector is, and will continue to be, important for investors, despite impacts of COVID-19 or the U.S. election.