🥂 Cheers to a better year

Economists have high hopes for 2022 | And stocks could be set for a big year too | [Finimize]( Hi {NAME}, here's what you need to know for December 31st in 2:59 minutes. 🍾 That’s another weird year in the bag, but you’ve been great company every step of the way. Let’s meet back here on January 5th for one that’ll be smooth sailing. No hiccups whatsoever. We almost guarantee it. Today's big stories - Economists have made their predictions for the global economy in 2022 - We’re highlighting our analysts’ best Insights, giving you another opportunity to revisit this year’s top actionable ideas – [Read Now]( - We take a look at what’s on the horizon for stocks around the world Fairytale Ending [Fairytale Ending] What’s Going On Here? Economists have high hopes for the global economy in 2022, but a lot rides on whether central banks serve something up that’s too hot, too cold, or just right. What Does This Mean? Economists reckon the “real” – that is, inflation-adjusted – global economy will grow by 4.4%, driven primarily by the US, Europe, and China’s respective 3.9%, 4.2%, and 5.3%. But there’s a catch: that growth – motivated by a recovery in consumer spending and a declogging of supply bottlenecks – could continue to push up prices, which is why economists are expecting inflation to hit 3.5% around the world next year. That might encourage the Federal Reserve (the Fed) to hike interest rates as soon as mid-2022, even if the European Central Bank (ECB) has said it’s not planning to do the same until at least 2024. But if inflation keeps bearing down on the region, it might be forced to change that position pronto… Why Should I Care? For markets: What’s a central bank to do? The Fed is in a pickle: if the central bank makes borrowing more expensive by raising rates, it risks limiting economic growth as much as it does inflation. American shoppers only have so much cash to spend, after all, and they’re likely to buy fewer nice-to-haves if they’re confronted with expensive price tags. The Fed, then, needs to time its rate rises perfectly next year to enjoy the best of both worlds. The bigger picture: Put down the dollar. Goldman Sachs is expecting non-US stocks to do well next year, which doesn’t bode especially well for the US dollar. A wider choice of potential winners could encourage investors to sell their dollar-denominated American stocks in favor of those denominated in foreign currencies, which would push down the former’s currency versus others around the world. You might also like: [Inflation’s just one possible risk to your investments next year.]( 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=Fairytale Ending&utm_campaign=daily-global-31-12-2021&utm_source=email) Analyst Take Three Reasons It’s High Time You Bought Some Crypto [Three Reasons It’s High Time You Bought Some Crypto]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst What’s Going On Here? Cryptocurrency prices have [been on fire over]( the past year. And while this has made the crypto bulls more confident than ever, investors on the sidelines might be [more suspicious than ever]( of a sharp pullback. But whether you’re a crypto naysayer or just a rational skeptic, there are three [good reasons for investing]( – and it’s not just the promise of high returns. In fact, two of them are about what you can learn from investing in crypto, and how it could help [bring your overall investment game up a notch](. So that’s today’s Insight: why you really [ought to invest (at least a bit) in crypto](. [Read or listen to the Insight here]( In Limbo [In Limbo] What’s Going On Here? Stocks could be set for another strong year in 2022, even if company valuations end up going nowhere fast. What Does This Mean? The key US and European stock indexes – the S&P 500 and the Stoxx 600 – climbed 30% and 22% respectively this year. And Goldman Sachs thinks both will carry that momentum into next year, estimating that the S&P 500 will be 9% higher and the Stoxx 13% higher this time next year. That’s all well and good, but the investment bank also argues that the S&P 500’s “[price-to-earnings ratio](” – a key valuation measure – won’t budge much. See, it’s true that shoppers are more likely to be out and about next year, pushing up expectations of companies’ profits and, by extension, their valuations. But it’s also true that any boost this provides could be offset by interest rate hikes, which would make safer investments more appealing at stocks’ expense, in turn lowering stocks' valuations. Why Should I Care? For markets: Is this tech’s swansong? Analysts still have their reservations about the US stock market, mostly because just 10 companies – including Apple, Microsoft, and Amazon – are responsible for around 30% of its value. If these stocks were to collapse, then, the entire index could too ([tweet this](). This is nothing new, admittedly, and investors have blithely continued to buy their shares for years. But 2022 could finally be the year they fall out of favor… For you personally: Goldman’s recommendations. First up, buy into companies – think [consumer staples](, which sell everyday essentials – that can pass price rises onto their customers without losing them to the competition. Second, avoid those with high workforce costs, since those costs are only going to get higher if wages keep rising. Third, “growth” stocks – those of fast-growing companies – are probably fine, but avoid unprofitable ones, which will be most at risk if interest rates rise. You might also like: [The top stock picks for a calmer 2022, according to Goldman Sachs](. 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=In Limbo&utm_campaign=daily-global-31-12-2021&utm_source=email) 💬 Quote of the day “I don’t know where I’m going from here, but I promise it won’t be boring.” – David Bowie (an English singer-songwriter and actor) [Tweet this]( 🌎 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 - Dubai wins at fireworks. So good, you can watch them [around the world](. - The theory of desire. Do you really know [what you want]( out of next year? - Your champagne toast is sorted. All the [one-liners]( you need this NYE. - Tiger King’s been dethroned. And the [attacks]( just keep coming. - Jurassic Park, anyone? How we could end this year with our own [big evolutionary bang](. When you support our sponsors, you support us. Thanks for that. ❤️ 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? [Get in touch]( Image Credits: Image credits: ShutterStock - New Africa, OlgaChernyak, irina_angelic CNuisin | Shutterstock - kckate16, SIVStockStudio Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails 😴 Crafted by Finimize Ltd. | Bow Bells House, Bread Street, London, EC4M 9HH All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021 [View Online](