Central Bank actions against inflation will weigh-down markets in 2022, warns Sun Global CEO

Mihir Kapadia, CEO of Sun Global Investments, shares his market predictions for 2022

“The UK High Street has had a strong Christmas period with the sales numbers from Next beating expectations –  however it may not be quite indicative of general health in the high street as over 50% of its sales were generated online. Despite omicron variant surging, we expect there to be fewer restrictions this year particularly as the world has started to adapt and accept covid-19 as reality, and as vaccinations seem to be preventing severe disease and deaths.

“US, Europe and Asian stock markets are pulling back as the Federal Reserve indicated the looming interest rate hikes may brought in sooner than anticipated to claw back rising inflation in the US – which hit 6.8% in December.

As we assume life with covid as a normal and businesses continue their regular operations, supply chain bottlenecks should reset.

“However, as interest and bond yields rise, speculative or highly valued risk assets will struggle as investors to shift to more defensive sector such as utilities, consumer staples and pharmaceuticals etc. The bumper market returns in 2020 and 2021 will not be repeated and market growth in 2022 should be more modest as headwinds will be greater.  We expect a more normal market this year and sectors which have underperformed for the last few years will do much better.”

 


About Sun Global Investments

Sun Global Investments Ltd. is an international financial services firm based in London, providing a full scope of services to institutional investors, corporate companies, family offices and high net worth individuals. Established in 2008, in the midst of turmoil in the financial services industry, Sun Global identified lucrative investment opportunities in emerging market corridors and has since established itself as a trusted boutique firm for investors looking to take advantage of these versatile markets.

The company has three core functionaries: Wealth Advisory, Corporate Finance and Securities Trading. Wealth Advisory specialises in Portfolio Management, Lifetime Investment & Inheritance Planning and Family Office functions; Corporate Finance specialists work on M&A, Fundraising, Equity/Debt Capital markets, Restructuring and Special Situations; Securities Trading is the bedrock of the business with the team liaising with over 150 market counterparties in Fixed Income, Bonds, Equities, FX and Commodities to provide the best pricing for clients.

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