by InteractiveAdvisors
by InteractiveAdvisors
Outlook

Forecasts Quarter 3 2022

by |Published

By Simona M Mocuta,Chief Economist and Jeremiah Holly, CFA, Portfolio Manager, at SSGA

Global Economic Outlook

  • With global monetary tightening in motion amid exceptionally high inflation, the world economy is entering a slowdown. There is a chance of a growth recession or even something worse.
  • Signs of normalization in global supply chains have been modest. Firms are now revisiting such arrangements with an eye on shortening and simplifying them.

Emerging Markets Outlook

  • Risks of further lockdowns under China’s zero-COVID policy reignited worries in Q2 around global supply chains, growth, and inflation.
  • However, June data implied a material increase in activity at the end of the second quarter, indicating a favorable start to the second half of 2022.

Global Capital Market

  • The circular risks surrounding inflation, interest rates and economic growth create a difficult backdrop for equity markets, even with the negative returns already witnessed year-to-date.
  • The prospects for fixed income are more balanced, but vary dramatically by sector, credit quality and maturity.

Read Full commentary here : https://www.ssga.com/library-content/pdfs/insights/quarterly-economic-forecasts-q3-2022.pdf

This post first appeared on July 27th, 2022 on the State Street Global Advisors blog

PHOTO CREDIT: https://www.shutterstock.com/g/HTWE

Via SHUTTERSTOCK

Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss. 

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.

AUTHOR

State Street Global Advisors
State Street Global Advisors
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see that what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third largest asset manager with US $2.72 trillion* under our care. While State Street licenses model portfolio data enabling Interactive Advisors to build and periodically rebalance these portfolios, State Street does not have trading discretion, and it is not an adviser or fiduciary to Interactive Advisors clients investing in these portfolios. *AUM reflects approximately $32.9 billion (as of June 30, 2018), with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

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