Global Equities
Global stocks rallied in 2021, boosted by massive government stimulus measures and pent-up consumer demand. Gains were tempered at times by worries about rising inflation, higher interest rates and the spread of coronavirus variants. Government bonds declined in the face of soaring inflation.
In the fourth quarter, strong corporate earnings growth and ongoing government stimulus measures pushed markets to record highs even as the omicron coronavirus variant raised concerns of a slowdown in economic activity. Bonds were under pressure as major central banks moved toward scaling back asset-purchase programs and raising key policy rates.
Information technology stocks rallied in the quarter as consumer-tech and semiconductor companies continued to drive markets higher. Utilities and real estate stocks also advanced amid a pronounced shift toward defensive sectors. Communication services stocks lost ground on concerns over slowing growth at some media and entertainment companies. Emerging markets stocks declined, hurt by slowing economic growth in China.
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