Key Takeaways

• We expect more volatile equity markets with more muted returns than the last two years as the macro environment undergoes a shift in terms of phase of the economic cycle, the pandemic, monetary policy and fiscal stimulus.
• Inflation will likely get worse over the next few months as easy comparisons from a year ago are lapped but should improve later in 2022 when comparisons become more challenging. Despite an unprecedented set of reasons for prices to soar, longer-term inflation expectations remain muted.
• Although the current cycle could run hotter a...