January 20, 2022 | Hoisington Q4 2021 Review and Outlook

Hoisington Investment Management’s fourth-quarter 2021 Review and Outlook is now available on their website here.   Always worth a mull.

Bottom line:  Global growth is slowing in 2022 under record debt, poor demographics, negative real yields and wages that undermine spending and productivity-enhancing investment.  China is looking a lot like Japan did in the 1980s. With emerging economies under increasing stress, Treasuries and U.S. dollars remain relative safe havens that should attract global inflows in 2022:

“Due to poor economic conditions in major overseas economies, 10- and 30-year government bond yields in Japan, Germany, France and many other European countries are much lower than in the United States.  Foreign investors will continue to be attracted to long-term U.S Treasury bond yields. Investment in Treasury bonds should also have further appeal to domestic investors, as economic growth disappoints and inflation recedes in 2022.”

Danielle Park January 20th, 2022

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