4 years ago

How to invest in Q4 2021?

Charlie Cooksey talks to Christian Gattiker, Head of Research at Swiss Wealth Manager, Julius Baer on investing in the last quarter of 2021. Are we facing inflation or deflation, and how does it affect investment decisions?  We are facing a bit of both. In the long-run, we’re certainly facing deflation, with falling prices in the past 30-40 years and all the more during the pandemic. What changed during this kind of normalisation is that we have had a spike in inflation and the question now is – is it transitory or will it remain this way? Our take is that we’re in a rather intermediate increase of inflation, which is very much related to the fact that lots of things were shut down and now reopened, so there’s a scarcity of some things and that pushes up the prices. Then we see a normilasation. That means we’ll most probably end up where we were before the crisis. Meaning not deflation, but rather pricing should be in time.  Why do you believe the extent of the global economic recovery is being underestimated? We suspect that the blueprint is a different one from what we usually have of the growth crisis. The […]