Welcome to 2022, we do hope you all enjoyed what festivities you could.
After a modest set back at the start of November, the Xmas rally held firm through to the end of the year and end of Q4 2021 performance reviews. These will be posted in the portal in the next few days, and will show performance based on close to the highest values all year for most of our portfolios. A pretty good year.
The start of 2022 has seen yields rising, government bonds falling and value equities doing better than growth stocks. UK Gilts are down about 4% in the last month as is the US Nasdaq index from the start of 2022. Our portfolios have not been immune from these falls, but our higher yield bonds, alternative assets and value equity funds have lessened the fall.
We are quite sure there will be plenty to discuss in 2022, both positive and negative and as ever we will share with you our views, thoughts and what we see happening as the year develops.
No doubt the main stream media will focus on all the negatives stories: Inflation and covid will be rampant, investment markets in freefall and in the words of Private Frazer (for those old enough to have grown up with Dad’s Army) ‘we will all be doomed!’
So as a Tideway tonic to such media bias we thought we would share with you some positive points from 2021 identified by TS Lombard our independent research providers and re-printed here.
2021 feel good facts courtesy of TS Lombard research
- The Wealth Gap has improved:
- The bottom one percent have had a large increase in their net wealth in 2021. Between 4Q20 and 3Q21 their net worth rose 50.2% compared with 12.8% for the top one percent. This is also a positive sign for demand, as the bottom income percentiles have the largest marginal propensity to consume.
- The bottom one percent have had a large increase in their net wealth in 2021. Between 4Q20 and 3Q21 their net worth rose 50.2% compared with 12.8% for the top one percent. This is also a positive sign for demand, as the bottom income percentiles have the largest marginal propensity to consume.
- Vaccines were distributed globally:
- 57% of the world population has received at least one dose of a COVID 19 vaccine. Almost 9 billion doses of COVID vaccines have been administered; that’s more doses then the global population at roughly 8 billion.
- 57% of the world population has received at least one dose of a COVID 19 vaccine. Almost 9 billion doses of COVID vaccines have been administered; that’s more doses then the global population at roughly 8 billion.
- Diseases were eliminated:
- The increased use of masks and focus on handwashing has led to the decline of not just COVID, but other diseases and viruses. Yamagata virus, used to kill around half a million people a year; it has now been declared very likely extinct.
- China was certified as Malaria free by the WHO ; over the last two decades, 11 countries have been certified by the WHO as malaria free. Additionally, the world’s first malaria vaccine was approved.
- Renewable Energy Took Off:
- The IEA reports that renewable electricity generation in 2021 is set to expand by more than 8% to reach 8 300 TWh, the fastest year on year growth since the 1970s.
- The IEA reports that renewable electricity generation in 2021 is set to expand by more than 8% to reach 8 300 TWh, the fastest year on year growth since the 1970s.
- Animals are coming back
- The Giant Panda was downgraded from ‘Endangered’ to ‘Vulnerable’
- Reddit investors adopted 3,500 gorillas in six days.
- Capybaras invaded an Argentina neighbourhood built on their land.
- While the Red List Index which shows trends in overall extinction risk for species overall continues to decline, it has stabilised for a number of species.
Bring on 2022!
