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“History suggests that the repercussions and effects of
pandemics have changed how the world functions and
people behave”
As we enter the cold season, Covid-19 infections are rising again and yet another virus strain, the Omicron variant, is spreading. While setbacks are possible, and perhaps probable, the economy and society at large now look better equipped to cope with the virus, given high vaccination rates, an ability to develop, adapt and produce vaccines, and a capacity to adjust working patterns flexibly and our lives more generally. As the coronavirus continues to circulate and mutate, it is going to remain a threat. Yet after settling down, it will likely become a more familiar and manageable issue.
History suggests that the repercussions and effects of pandemics have changed how the world functions and people behave. For instance, the devastation of the 1918 flu pandemic was quickly followed by a period of intense economic and social interactions. The Roaring Twenties saw a flowering of parties and concerts, as well as a radical shift in architectural design. It also heralded a period of consumerism and opportunities for innovators like Thomas Edison and Henry Ford to thrive.
Looking forward
The lockdowns accelerated many of the digital trends that were already under way and catapulted us into the future. However, as the global economy works through the gears of reopening, several challenges are arising. They include supply shortages, transportation bottlenecks and higher energy prices, which are all contributing to an elevated pace of inflation.
One of the most remarkable features of the past two years is that our economies have demonstrated just how quickly they can adapt. At Quintet, we continue to believe fundamental patterns and trends will reassert themselves as the world resets. Financial markets will probably continue to experience periods of volatility along the way, but the long-term outlook for investment returns remains positive.
Bill Street, Group Chief Investment Officer
We look back at what we got right and wrong in 2021 and we also take a glimpse into the future. As we focus on the long term, we discuss the developing dynamics we think of as a big reset.
See how our portfolios are developing for 2022. In this section we discuss our approach for strategic asset allocation, tactical asset allocation, fixed income, direct equities, alternatives and sustainability.
We’re committed as a firm to using only renewable electricity from 2022 and will no longer invest in companies that derive significant revenue from coal. We are also creating a new thematic approach to better inform our longer term investment strategies.
This document is marketing material and has been prepared by Quintet Private Bank (Europe) S.A. This document is defined as non-independent research because it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, including any prohibition on dealing ahead of the dissemination of this information.
This document is of a general nature and does not constitute legal, accounting or tax advice. This document does not provide any individual investment advice and an investment decision must not be based merely on the information and data contained in the document. All investors should keep in mind that past performance is no indication of future performance, and that the value of investments may go up or down. Changes in exchange rates may also cause the value of underlying investments to go up or down.
The statements and views expressed in this document based upon information from sources believed to be reliable – are those of Quintet Private Bank (Europe) S.A. as of 07 December, 2021 and are subject to change.
Copyright © Quintet Private Bank (Europe) S.A. 2021.
All rights reserved.
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