Global Markets Review & Outlook Q1 2022

Inside, you will find a summary of market activity and our market outlook.

After hitting a 4 January high, global markets fell into this bull market’s first correction as investors feared rising interest rates, inflation and Vladimir Putin’s vile Ukrainian invasion. At its 8 March low, the MSCI ACWI Index was down -13.4% before rallying to put full quarter returns at -5.4%. Despite the volatility, we still believe 2022 should be good for equities, with Tech and growth leading.

  • Early Year Volatility Appears to be a Classic Correction: Geopolitical uncertainty drove a sharp, early year decline in global markets. Despite the humanitarian tragedy, the scope of the conflict seems unlikely to derail the global economy or global equity markets.
  • Increased Investor Pessimism: Depressed sentiment, driven primarily by Russia’s invasion of Ukraine and concerns on inflation, has significantly lowered investor expectations increasing the likelihood that markets realize a better-than-expected outcome.
  • Global Markets Typically Reward US Political Gridlock: The incumbent party routinely loses power during the midterm year, reducing political uncertainty and the likelihood of extreme legislation. Increased gridlock likely acts as a tailwind for global markets in the back half of the year.
*The foregoing information constitutes the views of Fisher Investments based on information believed to be reliable. There can be no assurances that Fisher Investments will continue to hold these views. These views may change at any time based on new information, analysis, or reconsideration.

Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. Past performance neither guarantees nor reliably indicates future performance.


About Fisher Investments Europe

Fisher Investments Europe was established in London, England in 2000. Fisher Investments Europe offers the portfolio management services of its parent company, Fisher Investments, an independent money management firm in the US founded in 1979 by investment guru Ken Fisher. Today, Fisher Investments and its affiliates oversee more than £150 billion* in assets for over 100,000 private clients and 150 institutional clients globally.* Founder Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 to 2017, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 31/03/2022)