Global Equity Outlook: Increased volatility with continued US outperformance

Slightly lower returns

In the world of global equities increased volatility is on the cards for 2022, according to experts, who anticipate slightly lower returns than last year and the continued outperformance of the US market over Europe.

"The mid-cycle stage of the economic cycle usually leads to more volatility, and this will probably be the case again," said William Sels, chief investment officer of HSBC Private Banking and Wealth Management. He added that given the rally of 2021 and continued mixed economic data on both growth and inflation, "investor sentiment will also be volatile". There have been periods of increased volatility throughout 2021 with the Cboe Volatility index, the so-called volatility index, hitting 37 at the end of January and 31 in early December. However, its average for the year is 24 and at ...