EN - Report (page 2) - Flipbook - Page 3
Omicron dents December but strong 2021 for equities
•
We remain positive on risk assets (primarily
equities) heading into 2022, although the
Omicron variant has brought a fresh sense of
uncertainty, sparking volatility in markets.
•
The Stoxx Europe 600 Index remains near its
all-time peak after advancing more than 22%,
and with a 14% gain from the FTSE 100, this
has been an excellent 12 months for equities.
•
In the US, the S&P 500 did manage one last
high late in December and was up just under
27% in 2021.
•
Striking a more cautious note, history suggests
that after a gain of at least 20% by the US index,
returns are comparatively muted over the following
12 months, with an average rise of around 8%.
What to expect in 2022? Average returns from S&P 500 in year after a 20% gain
40%
30%
20%
Average
return
10%
0%
-10%
-20%
-30%
-40%
2020
2014
2010
2004
1999
1998
1997
1996
1932
1990
1986
1981
1976
1968
1962
1959
1951
1951
1946
1939
1937
1936
1934
-50%
Source: Dow Jones Market Data, 2021
Liontrust Multi-Asset Portfolio Services Quarterly Report: Q4 2021 - 3
