Horizon Q4 | 2021

Chance of year-end rally and reflation revival: Growth fears and expectations of declining inflation dominated the markets in the summer. Despite economic dampeners, growth and inflation should be more sustainable in the medium term and have potential to surprise.

Prof Dr Bernd Meyer and team provide an outlook for the 4th quarter of 2021 in the current Horizon publication.

Key messages of the capital market outlook

  • Short-term dampener: The powerful recovery continues despite temporary setbacks. The prevailing scepticism about growth in the third quarter seems exaggerated.
  • Reflation revival: Looking ahead to an economically solid 2022, strong growth, higher inflation over the longer term and the typical seasonality, bond yields
    should rise and cyclical assets gain.
  • Clear preferences: Equities and some commodities will continue to be favoured over bonds. For the time being, however, short term risks caution against
    adopting an overly aggressive position.

Your contact

Prof. Dr. Bernd Meyer
Chief Investment Strategist and Head of Multi Asset
Phone +49 69 91 30 90-225
Ulrich Urbahn
Head of Multi Asset Strategy & Research