Asset Allocation Strategy
Another Dominant Year for the US Stock Market
Mon 13th December, 2021

The US market continues to defy the naysayers with another impressive year of performance. The S&P500 has risen 24% YTD total return (31% in A$), a return that is comfortably ahead of both the rest of world equities and our local market. Outperformance has been skewed toward the second half of the year, helped by strong performance from big cap US tech as well as a resurgent US$.

Despite a recent wobble around Omicron and a more hawkish Fed, the US equity market has had another extraordinary year pulling well clear of rest of world equities and Australia in recent months. Reviewing this performance we explore:

  • US valuation premium expands in 2021
  • The benefits of a strong earnings backdrop
  • US mega-cap tech doing the heavy index lifting
  • The US economic and policy backdrop
  • 2022 growth looks good but inflation key
  • Macro outlook cloudy near-term but concerns should fade into 2022

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    Written by

    David Cassidy , Head of Investment Strategy

    David is one of Australia’s leading investment strategists.

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