With the virus outbreak still in full swing, some Western nations are already mulling a relaxation of lockdown. In the US, that has led to a showdown between the layers of government. These are tough decisions to make, notes our chief investment officer Julian Chillingworth.

The prolonged coronavirus lockdown will have lasting economic and social impacts around the world. Here our investment team consider four key areas where things may never be the same again.

Austerity is the latest victim as the largest giveaway since 1992 is unleashed.

A paradigm shift

ESG investing has risen in popularity during the pandemic, driven by concern for the climate and society. With rising costs and uncertain returns on his ill-thought through chicken venture, Will McIntosh-Whyte is reminded you ignore the fundamentals at your peril.

Despite some large price swings, gold has solid underpinnings

Chancellor Rishi Sunak has written to the Office for Tax Simplification, calling for a review of capital gains tax (CGT). What might the Chancellor do — and how can investors limit their exposure to the tax if it rises as sharply as many expect?

The healing process

The final quarter of 2021 proved to be an eventful one for the global economy, with surging inflation and ongoing concerns about supply shortages. Yet markets performed relatively well over the period despite the new Omicron strain adding to the uncertainty. As we look ahead to 2022, economic indicators suggest the post-COVID recovery should continue, and so too should earnings growth.

The global economy is reopening for business as the COVID-19 virus recedes, and the groundwork has been laid for a speedy recovery by massive government and central bank stimulus. 

We close a difficult year with a sense of relief, and the tools to deal with the challenges ahead.

Tougher times may lie ahead, but we believe the cyclical rally has further to run.