Market news today – 4 January 2022 – Fidelity International

No-one should expect a repeat of 2021, which was a lot kinder to investors than anyone could have predicted 12 months ago.

So, the current 7% rate of price growth in America, and not far behind that here in the UK and across Europe is the first cause for concern.

The financial markets are sceptical that it can do this at the pace it hopes and a slower and lower trajectory for interest rates will certainly help keep the market on track.

While this represents a slowdown, it would be more than acceptable and has the potential to keep investors interested in shares, especially if bonds continue to look relatively unattractive.

Last year, the multiple of earnings at which shares changed hands declined modestly as investors started to look through the recovery to a more subdued earnings outlook in the years ahead.

So, as ever, there are pros and cons, things to worry about and reasons to be optimistic about your investments.

If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.

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