In 2021, the market switched from expectations of strong economic recovery to renewed growth fears and finished the year fixated on inflation and probable interest rate rises.
The latter phase has put a dampener on growth stocks - rising interest rates factored into discounted cashflow valuation models make companies whose profitability is weighted towards the longer term look much less attractive. Uncertainty is increasing and 2022 may finally be the year that many chairs and managers of investment companies have been warning us about for some time now, when markets struggle to make headway. It has been interesting to watch the growth of funds focused on wealth preservation in this context. The AIC's flexible investment sector contains a number of multi...
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