🔊 The global economy's year: wrapped

The economy really bounced back this year | And the markets weren't too shabby either | [Finimize]( Hi {NAME}, here's what you need to know for December 30th in 3:02 minutes. ☕️ Finimized over an allongé at [Matamata Coffee]( in Paris, France (🌥 14°C/57°F) Today's big stories - We looked back at how the global economy recovered this year - We’re highlighting our analysts’ best Insights, giving you another opportunity to revisit this year’s top actionable ideas – [Read Now]( - We cast our minds back to the market's biggest winners and losers The Theory Of Relativity [The Theory Of Relativity] What’s Going On Here? The global economy bounced back in earnest in 2021, but you don’t have to be an Einstein to know that everything looks better next to the year before… What Does This Mean? We won’t know exactly how much the global economy grew in 2021 until the data is released early next year, but economists are expecting the “real” economy – that is, adjusted for inflation – to grow 5.8% this year compared to 2020. They reckon all the world’s major regions will have pulled their weight, with the US expected to grow 5.5%, Europe 5.1%, and China a massive 8% versus last year. Everything’s relative, of course, and 2020 was one of the worst years for economic growth since the Great Depression. And it’s not like we haven’t had our fair share of bumps in the road, most notably from inflation: the prices of goods and services are set to end the year 3.7% higher globally than last… Why Should I Care? For you personally: Give with one hand… This has had all kinds of repercussions on you personally. Jobs have been easy to come by, and you’ve been paid better for them too – not least because workforce shortages have left companies upping their game to win you over. The bad news is that US wages – which climbed by 4.8% in November compared to the year before – have been outstripped by the country’s higher prices, which jumped 6.8% in the same period. For markets: Central banks go from hero to zero. Central banks were the darlings of 2020, stepping in with unprecedented cash injections when the pandemic took hold. This year, though, investors have become increasingly frustrated with the party line that high inflation is “transitory”. The US Federal Reserve finally admitted in November that it’s been a bit too optimistic, but that’s left the central bank with a lot of catching up to do in 2022…  You might also like: [Bill Ackman’s betting big on inflation. Here’s how you can too.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Theory Of Relativity&utm_campaign=daily-global-30-12-2021&utm_source=email) Analyst Take Where Is Saint Buffett Investing His Money? [Where Is Saint Buffett Investing His Money?]( [Photo of Carl Hazeley] Carl Hazeley, Analyst What’s Going On Here? Chances are you’ve heard of [Warren Buffett]( – the billionaire founder of investment conglomerate [Berkshire Hathaway]( who can seemingly do no wrong. So, like most investors, you’re probably curious about [what his firm’s invested in]( and why. Well, you’re in luck, because Berkshire Hathaway shared its third-quarter update – and it turns out 70% of its [$311 billion]( stock market portfolio is invested in just four stocks. And since Buffett’s favorites – cheap-looking value stocks – tend to be a good way to hedge against inflation, the firm’s top picks could [give your portfolio a boost too](. So that’s today’s Insight: [what stocks Buffett’s firm is betting biggest on](, and whether you should follow suit. [Read or listen to the Insight here]( Greatest Hits [Greatest Hits] What’s Going On Here? Investors have been trying to find gains wherever they can this year, but they’ve definitely had a few old favorites on repeat. What Does This Mean? US stocks had an impressive 2021: the S&P 500 – the country’s key index – climbed 29% on the back of a rebound in demand, injections of government support, and a meme stock-inspired influx of retail investors ([tweet this](). Commodities have been going from strength to strength too, with a key index up 39% as demand for energy and raw materials surged. Government bonds, not so much: investors sold them off as they became more confident in the overall recovery and, by extension, the stock market – not to mention as inflation (which makes bonds worth less) poked its head above the parapet. Why Should I Care? For markets: The winners and losers. The stock market had a few MVPs this year: Moderna climbed 116%, Nvidia 131%, and Ford 144%. And though it feels like a long time ago now, remember this was the year in which GameStop jumped 1,800% in the space of three weeks. As for the year’s losers, Alibaba’s stock – battered by China’s [common prosperity-inspired]( crackdowns – lost 50% of its value this year, sending its shares to a four-year low. Robinhood was down in the dumps too: the trading platform’s stock is now worth less than half the price it listed at in July, as its user growth plummeted and the risk of regulation loomed. The bigger picture: Is it time to cut and run? Interest rates were so low this year that savings and government bonds barely paid anything, which has made risky investments all the more appealing. That goes some way to explain why bitcoin and ether have climbed 65% and 416% this year. Trouble is, when interest rates do go up, riskier investments could be the first to be dumped by investors… You might also like: [How well did your portfolio really do in 2021?]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Greatest Hits&utm_campaign=daily-global-30-12-2021&utm_source=email) 💬 Quote of the day “Don’t sit down and wait for the opportunities to come. Get up and make them.” – Madam C.J. Walker (the first female self-made millionaire) [Tweet this]( CRYPTO PULSE, TOGETHER WITH FABRIIK What is tokenization? Blockchain is opening up a whole new world of opportunities for asset management. That’s in large part down to [tokenization]( – the process of converting an asset’s ownership details into a “token” that can be transferred and manipulated on a blockchain network. Put simply, tokenization converts the value of an object – a house, a dollar, or even computing power – into a digital form that can be [sent, received, and stored]( on the blockchain. As for where to create tokens, Bitcoin SV’s low costs, high speeds and limitless scaling potential make it an ideal blockchain for that purpose. You can see a great example of Fabriik’s use of Bitcoin SV for tokenization services [here](. Head over to Fabriik to learn more about[tokenization for different types of assets](. [Learn More]( When you support our sponsors, you support us. Thanks for that. 🌎 Finimize Live 🏃‍♂️ Start your year on the right foot If you’re looking for a new challenge in the new year, boy do we have an opportunity for you: [apply to be one of 50 Finimize hosts today](, and you’ll walk away with a wealth of interview expertise, a load of new connections in the finance industry, and a reputation as a thought-leader among our 1 million-plus audience. You don’t need to be a pro already: we’ll give you all the training you need. Keen? [Apply here](. 🎯 On Our Radar - Your year of Wanderlust. Here’s how you can [afford it](. - Olive Garden NFTs are taking off. Don’t get us started on the [breadsticks](. - Little changes, big difference. Update your diet to [save the planet](. - Bad, Alexa. Kids should beware of the [evil invisible voice](. - Time poverty can really hurt your health. And you might not even realise you’re [suffering from it](. ❤️ Share with a friend Your Referrals: 0 Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag. Share your unique link: [ You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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