2022 Outlook - Reflation: Endgame
Inside this issue
Welcome back and Happy New Year! For Q1'22, I am making the newsletter 3x per week delivered around 11am CST on Tuesday through Thursday. The break in the daily newsletters will allow me to finalize and explore new partnerships. I'm excited to announce at least two partnerships in the coming weeks! In the meantime, please let me know if you have any suggestions.
Earlier this week, J.P. Morgan's Chairman of Market and Investment Strategy, Michael Cembalest, talked through the firm's outlook for 2022.
The superheroes on the cover have all contributed in their own way to a reflating world: higher nominal growth, higher wages, higher prices and rising asset prices. While the COVID recession was deeper, the global recovery is on track to eliminate spare capacity at a much faster pace than after prior recessions.
The changing dynamics of the workforce, supply chain shocks, monetary and fiscal stimulus, and energy demand and price spikes have all influenced inflation.
Global inflation is close to the highest level in 20 years, driven by surging goods prices and changing consumption patterns due to COVID, the inability of a just-in-time corporate sector to respond, soaring government debt, monetary policy that dwarfs anything seen after the Global Financial Crisis a decade ago, and energy policies which reduce the supply of thermal energy much faster than they reduce demand.
Dive deeper into each of the sections below at JPM's 2022 Outlook - Reflation: Endgame.
Public equities: Dividends, Cybersecurity and Fintech
1. Equity dividends: like it or not, dividends are a critical component of yield based investing
2. Cybersecurity investing: innovation and evil collide, providing opportunity for investors
3. F is for Fintech…and also for fear, fraud and foreclosure
Real Assets: Commercial Office Property, Infrastructure and Timber
4. US office market fundamentals: already improving despite COVID
5. Infrastructure investing: devil is in the details (electricity distribution, solar power and bulk storage)
6. Timber: steady yields with potential upside in a world searching for real sequestration
Policy Issues: China's Regulatory Purge, Brexit and ESG Investment Factors
7. China portfolio inflows continue despite 2021 regulatory purge and slowing growth
8. Brexit and the high price of national sovereignty
9. ESG portfolio benefits look clearer but precede the 2021 recovery of traditional energy sectors
Inside this Issue
♻️ 10 ESG Questions Companies Need to Answer
💨 Emerson Acquires Danish Automation Supplier to Wind Energy Market
☀️ Scout Clean Energy acquires utility-scale solar project in Illinois
🔌 Enphase Energy Acquires Electric Vehicle Charging Platform ClipperCreek
🌏 Blackbaud Acquires EVERFI, a SaaS Leader Powering Corporate ESG and CSR Initiatives that Reach Millions of Learners Each Year
🛰 ExxonMobil and Scepter, Inc. to deploy satellite technology for real-time methane emissions detection
Articles in this issue