ANDPAPERS Q4 2021 | RETURN TO LIFE AS WE KNEW IT?

21.10.2021
BY LONDON & CAPITAL'S INVESTMENT TEAM
Facebook Twitter Linkedin

Even if full normalcy is still a long way ahead, shops are reopening, vaccines are rolling out and people are ready to return to ‘life as we knew it’.

Closing the remaining slack will keep providing impetus to economic growth, but there is evidence that the speed of the recovery is slowing down at a time when risks are looming.

Chief amongst these is the possibility that the US Federal Reserve’s (Fed) credibility is about to be tested if inflation continues to increase. It is true that current inflationary pressures were generated by supply rather than demand:

  • Global suppliers struggled to predict demand for their products as the economy adopted a stop-and-go pattern of reopening. This created shortages in areas such as semiconductors.
  • Dislocation of global supply chains as containers and container ships were not made available quickly enough.
  • When Covid-19 hit, many companies decided to run down their inventories to preserve liquidity buffers, so stockpiles were too low when the recovery in demand started.

To read the full AndPapers Q4 2021 click here


To get in contact with London & Capital, please give us a call on +44 (0) 207 396 3388 or get in contact here.


Disclaimer: The value of investments and any income from them can fall as well as rise and neither is guaranteed. Investors may not get back the capital they invested. Past performance is not indicative of future performance. The material is provided for informational purposes only. No news or research item is a personal recommendation to trade. Nothing contained herein constitutes investment, legal, tax or other advice. Copyright © London and Capital Asset Management Limited. London and Capital Asset Management Limited is authorised and regulated by the Financial Conduct Authority of 12 Endeavour Square, London E20 1JN, with firm reference number 143286. Registered in England and Wales, Company Number 02112588. London and Capital Wealth Advisers Limited is authorised and regulated by both by the Financial Conduct Authority of 12 Endeavour Square, London E20 1JN, with firm reference number 120776 and the U.S. Securities and Exchange Commission of 100 F Street, NE Washington, DC 20549, with firm reference number 801-63787. Registered in England and Wales, Company Number 02080604.
Facebook Twitter Linkedin