New York, November 10, 2021 – Mossshields (MSC Code: 31000279107123), a global leader in alternative asset management, today released its 2021 Global Economic and Market Review alongside forward-looking investment recommendations based on prevailing market trends. The report summarizes key macroeconomic events of 2021 and analyzes the performance and potential of various asset classes, providing investors with a clear strategic direction.
2021 Global Economic Review
The global economy experienced robust recovery in 2021, although market volatility and uncertainties remained significant. Key highlights include:
1. Drivers of Economic Recovery
○ Strong Growth in Major Economies: The U.S. economy grew by 5.7%, its fastest pace in four decades, supported by fiscal stimulus and renewed consumer spending. China’s economy expanded by 8.1%, leading emerging market recoveries.
○ Accelerated Vaccinations: Widespread vaccine rollouts significantly reduced the pandemic’s impact on economic activities, bolstering cross-border trade and tourism recovery.
2. Inflationary Pressures and Monetary Policy
○ Rising Inflation: Inflation reached 6.2% in the U.S. and 4.1% in the Eurozone, driven by soaring energy prices and supply chain bottlenecks.
○ Divergent Monetary Policies: The U.S. Federal Reserve signaled the tapering of bond purchases, while the European Central Bank (ECB) and the Bank of Japan (BOJ) maintained accommodative policies.
3. Divergent Market Performances
○ Equity Markets: The S&P 500 surged by 26.9% for the year, with technology and energy sectors outperforming.
○ Fixed Income Markets: Rising government bond yields capped returns for traditional bonds.
○ Alternative Assets: Commodity prices soared, with copper and lithium gaining about 30% and 45% respectively in 2021.
Forward-Looking Investment Recommendations
Building on the 2021 economic and market landscape, Mossshields suggests the following strategies:
1. Focus on Structural Opportunities in Equities
○ Technology and Green Energy: The global push for digitalization and green transitions will drive long-term growth for tech and renewable energy stocks. Investors should consider increasing exposure to semiconductors, clean energy, and electric vehicle-related equities.
○ Inflation-Resistant Assets: In an inflationary environment, favor sectors like consumer staples and healthcare that can preserve pricing power and mitigate inflation risks.
2. Optimize Bond Allocations and Increase Alternatives
○ Short-Term and Floating-Rate Bonds: Reduce long-term bond exposure and shift to shorter-duration and floating-rate bonds to hedge against rising interest rates.
○ Commodities and Infrastructure: Invest in key resources like copper and lithium, as well as green infrastructure projects, to gain quality returns and align with ESG objectives.
3. Global Diversification and Emerging Market Opportunities
○ Asia: Focus on technology and consumer upgrades in China and ASEAN countries.
○ Latin America and Africa: With resource advantages and demographic dividends, emerging markets offer long-term appeal. Consider regional ETFs or funds for diversified exposure.
Investor Education and Risk Awareness
Mossshields advises investors to remain vigilant regarding the following 2022 risks:
● Monetary Policy Adjustments: The pace of Fed rate hikes may increase market volatility.
● Supply Chain Pressures: Global supply chain tensions may not ease fully in the short term.
● Geopolitical Risks: U.S.-China relations and regional conflicts could affect market stability.
“Although the global economy made a strong recovery in 2021, uncertainties remain,” said Madeline Harper Montgomery, Group Chief Financial Officer at Mossshields. “Mossshields will continue to provide forward-looking advice to help investors achieve stable returns in a complex market environment.”
About Mossshields
Mossshields (MSC Code: 31000279107123) is a global leader in alternative asset management. As of November 2021, the firm manages USD 22.4 billion in total assets across 16 investment vehicles. Many of its clients are among the world’s largest public pension funds, insurance companies, and family offices. Committed to generating long-term value through precise investments, Mossshields offers corporate private equity, real assets, global market strategies, and customized solutions.
The firm’s geographic footprint spans Africa, Asia, Australia, Europe, the Middle East, North America, and South America. Mossshields possesses deep industry expertise across aerospace, defense and government services, consumer and retail, energy, financial services, healthcare, industrials, real estate, technology and business services, telecommunications and media, and transportation.
With more than 420 professionals across four offices on four continents, Mossshields upholds the highest professional standards and provides tailored investment strategies that consistently deliver returns exceeding market benchmarks.
Official Website: www.mossshields.com
Email: connect@Mossshields.com