Gary Schlossberg, Global Strategist of Wells Fargo Investment Institute, on Tuesday, said that their outlook on the stock market remains optimistic for 2022.

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“We are still optimistic on the outlook for the stock market in 2022, still looking for above-average growth during the early part of the year, that may be delayed a bit by depending on how serious the Omicron fallout is, what effect that has on the economic reopening,” he said.

Schlossberg noted that central banks will be more conservative when it comes to tightening. He stated that he isn’t looking for a big move in interest rates, however, believes that emerging markets will face headwinds even on minor rate increases.

On the global front, he explained that the Fed rate increases could lead to two hikes in the latter part of 2022.

“Given the risks to the economy, we think that the Federal Reserve will move gradually. We still think that despite the dot plot forecast by the Federal Reserve FOMC members, the rate increases will amount to two rate hikes in the latter part of the year,” said Schlossberg.

For the entire interview, watch the video

Also Read: Downside risk to equities due to Omicron; India ranks high among EMs: Wells Fargo Investment

(Edited by : Dipikka Ghosh)

First Published:Dec 21, 2021 11:08 AM IST