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views
Welcome
to LIONTRUST views – Winter 2022
Welcome to the Winter 2022 edition of Liontrust Views.
On 1 February, the Chinese year of the Tiger begins.
People born in a year of the Tiger are reputed to be brave,
competitive, unpredictable and confident. It seems as though
“unpredictable” is particularly apt given the volatility that
investment markets have experienced at the start of this
calendar year and may continue to endure during 2022.
4
VIEWS of the Liontrust
Multi-Asset team
6
WHAT TO
LOOK FOR
in 2O22
On pages 6 to 9 of this issue of Liontrust Views, we highlight
some of the key things to watch out for in 2022. These
include the fact that while there are reasons to remain positive
about stock markets, history suggests we have been due a
significant correction after the strong performance of the past
couple of years.
One trend we have already been seeing is higher inflation,
as we are experiencing all too clearly through increasing
prices of food, petrol and energy, and therefore face the
potential for further rises in interest rates. Our article on pages
10 and 11 explains why inflation and interest rates matter for
investors and not just consumers.
Of course, any such trends also present investment
opportunities. For example, in this issue we highlight the
potential attractions of global ex-US stock markets and
small cap equities.
We also look back at the forces driving investment markets
over the past quarter and provide our latest views on bonds
as well as equities on pages 4 to 5.
While we focus on the year ahead in this issue of Liontrust
Views, periods of greater volatility and uncertainty reiterate
the importance of taking a long-term view of investments
and the level of risk appropriate for you, your objectives and
timeframe to achieve them.
We hope you find this issue of Liontrust Views insightful
and interesting.
10
WHY INFLATION
AND INTEREST
RATES in
developed
markets matter
3
