Understanding the Sell-Off

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Markets Catch-Up With The Central Bankers But Economies Are Already Slipping

 

The collapse in Central Bank liquidity is adding a fierce headwind for investors in 2022. This will be a year for capital preservation. However, not just Global Liquidity matters. Investors’ risk positioning is also affected by economic developments, among other things. We argue here that latest daily data points to weakening economies and may itself warrant lower equity exposure. The exception here is China, where already low investor holdings of stocks is starting to confront a strong pick-up in positive economic surprises. China could be the maverick play in 2022?

 

 

 

See our latest published research, Global View - Markets Catch-Up With The Central Bankers But Economies Are Already Slipping – January 2022

 

 

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