PERSPECTIVE3-5 min to read

Webinar: A new phase in global growth

We expect economic activity to remain strong, even if the pace of growth is slowing. Corporate spending is set to fuel the next stage of the expansion.

14/10/2021
smart-factory

Authors

Caspar Rock
Chief Investment Officer
Ahmet Feridun
Deputy Chief Investment Officer
Christopher Lewis
Head of Investment Strategy, Wealth Management

Stock markets have performed well this year, driven by a strong recovery in company earnings.

We expect economic growth to remain robust, as consumers spend savings accumulated during lockdowns. Increased corporate investment should support growth over the medium term.

Inflation is likely to moderate from current elevated levels, though it is likely to settle at higher levels than we saw before the pandemic.

This economic backdrop, and modest earnings growth, should continue to help equities. However, performance is unlikely to be as strong as it has over the past year.

We expect bond markets to remain under pressure as central banks begin to normalise monetary policy.

Within equity markets, key themes we are focusing on include:

• Energy transition: governments are set to spend $30 trillion on renewable energy infrastructure over the next 15 years, creating exciting investment opportunities.

• Technology: the digital economy continues to grow and technology companies remain very profitable.

• The continued rise of China: despite near-term headwinds, rising incomes, focused investment and innovation mean longer-term prospects remain attractive.

• Private assets: we believe they can enhance risk-adjusted returns and provide access to opportunities that are not available in public markets.

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

 

Authors

Caspar Rock
Chief Investment Officer
Ahmet Feridun
Deputy Chief Investment Officer
Christopher Lewis
Head of Investment Strategy, Wealth Management

Topics

Perspective
Economic views
Global Market Perspective
Economic & Strategy Viewpoint
Thought Leadership

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.