2022 Annual Investment Outlook

Introduction……

2021 was a strong year for risk assets with a number of markets finishing off the year at or close to their all-time highs. The MSCI World index returned over 20% while the S&P 500 neared an impressive 27%, and Europe 22%. While the UK lagged (+14%), the most significant outliers were Asia and Emerging Markets where a significant appreciation in the Dollar over the past year proved challenging.

Central banks continued their monetary and fiscal support measures enabling economic activity to rebound towards the underlying growth trend. However, there was a marked contrast between goods and services and increased demand for goods, which combined with supply chain disruptions, resulted in a sharp rise in inflation towards the year-end. While vaccine availability helped limit Covid death rates, new variants and recurrent waves of infection accompanied by fresh restrictions impacted services at different stages throughout the year – particularly for hospitality and travel.

As we look towards 2022, risks surrounding inflation, tightening monetary policy, slower growth and continued Covid-related uncertainty have all raised concerns for investors. In this year’s investment outlook, we tackle these central investment themes that define the future path for markets and are critical in determining how to position portfolios for the cycle ahead. While these factors will likely lead to greater volatility for markets, we believe the strong fundamental and supportive policy backdrop for growth and earnings remains intact and should help extend the equity market cycle into 2022, albeit with lower and bumpier returns than we saw in 2021.

To read our full review, please download here or view pdf below:

Seaspray FS OUTLOOK 2022

If you would like to discuss anything raised above or would like a review of your financial position, please do not hesitate to contact us

Tel:  +353 1 70 70 000           or       info@seasprayfs.ie

Warning: The value of your investment may go down as well as up and you may lose some or all of the money you invest. Past performance is not a reliable guide to future performance. Investments denominated in a currency other than your base currency may be affected by changes in currency exchange rates.

https://seasprayfinancialservices.ie/important-disclosures/

Copyright Seaspray Financial Services Ltd 2022

This material is approved for distribution in Ireland by Seaspray Financial Services Ltd .It is intended for Irish retails clients only and is not intended for distribution to, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. Seaspray Financial Services Ltd Ire (“SFS”) is regulated by the Central Bank of Ireland.

Where SFS wishes to make this and other Seaspray Financial Services Ltd research available to Retail clients, such information is provided without liability and in accordance with our terms and conditions that are available on the SFS website.

No report is intended to and does not constitute a personal recommendations or investment advice, nor does it provide the sole basis for any evaluation of the securities that may be the subject matter of the report. Specifically, the information contained in this report should not be taken as an offer or solicitation of investment advice, or to encourage the purchased or sale of any particular security. Not all recommendations are necessarily suitable for all investors and SFS recommend that specific advice should always be sought prior to investment, based on the particular circumstances of the investor either from your SFS investment adviser or another investment adviser.

SFS takes all responsibility to ensure that reasonable efforts are made to present accurate information but SFS gives no warranty or guarantee as to, and do not accept responsibility for, the correctness, completeness, timeliness or accuracy of the information provided or its transmission. This is entirely at the risk of the recipient of the report. Nor shall SFS, its subsidiaries, affiliates or parent company or any of their employees, directors or agents, be liable to for any losses, damages, costs, claims, demands or expenses of any kind whatsoever, whether direct or indirect, suffered or incurred in consequence of any use of, or reliance upon, the information. Any person acting on the information contained in this report does so entirely at his or her own risk

All estimates, views and opinions included in this research note constitute Seaspray Financial Services judgment as of the date of the note but may be subject to change without notice. Changes to assumptions may have a material impact on any recommendations made herein.

Unless specifically indicated to the contrary this research note has not been disclosed to the covered issuer(s) in advance of publication.

Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. Investments denominated in foreign currencies are subject to fluctuations in exchange rates, which may have an adverse affect on the value of the investments, sale proceeds, and on dividend or interest income. The income you get from your investment may go down as well as up. Figures quoted are estimates only; they are not a reliable guide to the future performance of this investment.

Conflicts of Interest & Share Ownership Policy

It is noted that research analysts’ compensation is impacted upon by overall firm profitability and accordingly may be affect ed to some extent by revenues arising other Seaspray Financial Services Ltd business units including Investment Management and Corporate Finance. Revenues in these business units may derive in part from the recommendations or views in this report. Notwithstanding, Seaspray Financial Services Ltd is satisfied that the objectivity of views and recommendations contained in this note has not been compromised. Nonetheless Seaspray Financial Services Ltd is satisfied that the impartiality of research, views and recommendations remains assured.

Analyst Certification

Each research analyst responsible for the content of this research note, in whole or in part, certifies that: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research note.

We have assessed the publication and have classed it as Research under MIFID II. All charges in relation to this publication will be borne by Seaspray Financial Services Ltd

EON.

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