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Market Perspectives February 2022
08 February 2022
Welcome to the latest edition of “Market Perspectives”, the monthly investment strategy update from Barclays Private Bank, which is also available to download as a PDF at the bottom of this page.
The year has kicked off with financial markets particularly volatile, as galloping prices and the timing of interest rate hikes focus investors’ minds. This month’s articles examine how these themes might evolve, including the implications of elevated inflation for equities and bonds.
We also take a look at how private markets can help you navigate rising inflation expectations. Furthermore, our behavioural finance piece looks at what investors can do to protect their portfolios in the face of stock market turbulence.
Jean-Damien Marie and Andre Portelli
Co-Heads of Investment, Private Bank
Insights for February
Cross-asset: inflation
How to ride out the inflation storm
With inflation on the charge, portfolio allocation is key. Equities still appeal. But, staying invested in a diversified portfolio seems the best option.
Macro – global economic prospects
Will ballooning inflation and Omicron slow global growth to a trickle?
After a strong recovery, can the global economy grow above trend this year, with surging prices, COVID-19, and rising political tensions?
Equities
Can equities outperform when the Federal Reserve raises interest rates?
This year’s sharp rotation in equities may have more to go. But, can equities continue to outperform, as the US central bank lifts rates?
Fixed income
US bonds: bridging the gap
The US central bank is adopting a hawkish stance in its fight against inflation. As the rate-hiking cycle nears, five-year debt seems to offer most value.
Quantitative strategy
How well anchored are US inflation expectations?
As prices surge and the US central bank begins to tighten policy, can long-term inflation expectations remain anchored for much longer?
Private markets
Putting a shine on your portfolio with mid-market private equities
With prices running hot, mid-market private equities may be part of the solution to building portfolios that can combat an era of elevated inflation.
Investing sustainably
Getting your portfolio climate-ready
As temperatures warm and related risks worsen, it may be time to build a climate-ready portfolio that can track the risks and spot opportunities.
Behavioural finance
When the going gets tough, the tough stay invested
More volatility is likely after a bumpy start to the year for markets. In such tough times, the key is to focus on your long-term goals and stay invested.
Multi-asset portfolio
Multi-asset portfolio allocation
Central bank policy supports “quality” developed market equities and gold. Developed market bonds stand out in the debt market, unlike high yield issues.
Indian multi-asset portfolio allocation
Optimism for Indian equities, despite volatility and nearing rate hikes
Indian equities have been resilient in recent bouts of volatility. The outlook for the asset class seems bright, as earnings rise and the revival broadens.
All the articles published in Market Perspectives are also available to download here as a PDF: