Stagflation in 2022? Probably not

Videos, Insights, CIO Update, Perspectives 2022
11/29/2021 by Dan Scott Reading time: 1 minute(s)

Our macro view as of December 2021

In 2022, developed countries will catch up with the growth trend and inflation will ease – that is our forecast. Find out here how Vontobel is positioned in this market environment.

How we position ourselves strategically:
The monthly CIO Update analyzes the current market environment and reveals the background. It is presented by Frank Häusler, Chief Strategist, and Sandrine Perret, Senior Economist.


Still an overweight in equities against bonds

“Stagflation” is the buzzword that currently accompanies us all. It is a phenomenon that occurs when stagnation in growth is accompanied by high inflation.

In their baseline scenario 2022, however, our experts do not expect this to happen.

Developed countries should catch up with their pre-pandemic growth trend in 2022, and growth rates in most quarters should remain above the pre-pandemic level. In terms of inflation, we expect “normalization” to occur again from the first quarter of 2022.

Three risks to remain

  • Supply bottlenecks could lead to persistent inflation, which will continue in 2022.
  • Central banks could act more restrictively, e.g. by raising interest rates.
  • China could continue to be exposed to negative events, e.g. vulnerability due to high debt levels.

In this market environment, we continue to maintain our current allocation and confirm our assessments with regard to all asset and subasset classes.



Investment Outlook 2022

Harder, better, tougher, greener

Just four buzzwords for investment year 2022? Find out more about Vontobel’s baseline scenario and get an overview of the backstory from our experts.