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Article | Global Markets Overview

Global Markets Overview: July 2022

By David Hoile | July 28, 2022

Tracking recent asset price moves and our outlook

Our latest Investment Outlook & what markets are pricing-in

  • In many developed economies, policymakers and households continue to grapple with stubbornly high inflation.
  • This has driven both a sharp increase in real yields in recent months as policy is discounted to tighten aggressively, and an increase in recessionary risk as real incomes decline and policy tightening bites.
  • It is not clear to us if equity markets and other risky assets adequately reflect this dual hit to prospective conditions: the first is discount rates increasing primarily due to real rate increases, and the second is cashflow certainty/earnings prospects declining due to growing recessionary risks. This means – despite material declines in equity prices this year – we have a marginally negative view on the range of equity return outcomes over the shorter-term, because current pricing may not adequately reflect higher real rates and weaker earnings prospects.
Global markets commentary

Dive deeper into inflation and multi-asset strategy with a short video featuring Senior Director and Multi-asset Strategist Martin Jecks.

To stay up-to-date and receive additional special feature reports from WTW on global capital markets, please contact David Hoile.

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Global Markets Overview: July 2022 PDF .4 MB

Global Head of Asset Research at WTW

David is the Global Head of Asset Research at WTW, responsible for economic and capital market research. He also is a member of the Investment Assumptions Committee, who help guide investment policy globally.

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