Stock markets in the developed world have delivered returns of around 17%, with the cyclical, recovery-sensitive parts of the market leading the way.
China has held back from the kind of stimulus that boosted markets in the recovery from the financial crisis.
The outliers in performance terms this year have, strangely, both been assets that investors are looking to as safe havens in a more inflationary environment.
The other traditional hedge against inflation, gold, has failed to shine, however.
Looking into 2022, inflation, interest rates and corporate earnings will be the key drivers of markets.
The good news for investors is that the outlook for company profits remains positive, even if the rate of growth falls from this year’s remarkable recovery in earnings.
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