Webinar: a new phase in global growth

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.

This article is issued by Schroders Wealth Management, which is part of the Schroder Group and a trading name of Schroder & Co. (Hong Kong) Limited, Level 33, Two Pacific Place, 88 Queensway, Hong Kong. Licensed and regulated by the Hong Kong Securities and Futures 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.

Contact Schroders Wealth Management

To discuss your wealth management requirements, or to find out more about Schroders Wealth Management and our services, please contact:

Robert Ridland

Robert Ridland

Head of Wealth Management, Hong Kong
Jelmer Kattevilder

Jelmer Kattevilder

Portfolio Director