Markets and Economic Update for December 2021

David Lundgren, CFA®
December 14, 2021

Each month, senior leaders of Hancock Whitney's Asset Management team discuss the latest news and events that impact markets and the economy. 

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Key takeaways this month:

  • Policy uncertainty is temporarily removed as lawmakers ‘kicked the can’ until February, averting a government shutdown, and also continue to negotiate Build Back Better legislation.
  • The U.S. is experiencing yet another COVID surge along with the emergence of a new variant, Omicron. As of now, we believe any new restrictions in the U.S. will be limited.
  • Economic data, despite supply chain frictions and new virus concerns, remain pretty solid. We continue to believe 4Q21 is likely to produce Real GDP growth in a range of 5-6% Q/Q annual rates.
  • Global equity markets continued to experience elevated volatility as a number of uncertainties are building headwinds to equity prices. We anticipate more volatility into the close of the year.
  • Longer term interest rates continue to fall while shorter term rates continue to creep higher as markets anticipate a more aggressive Fed regarding the pace of tapering purchases, and a more agile Fed free to begin raising short term rates in the spring or summer of 2022.

 

See and hear this month's presentation by clicking on the play arrow below:

 

2021 Dec HW Monthly Economic Update

 

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