Cycle Watch November 2021: Supply chains hold down growth
November 17, 2021
Businesses have faced a lack of qualified workers and continued supply shortages, yet surveys show manufacturing and service sectors continuing their expansion in the face of rising consumer prices and faster-than-average inflation which is expected to persist into 2022. Strong earnings and low rates have resulted in valuations above historic averages while credit spreads remain at near-record lows. Headwinds to the double-digit returns some investors have become accustomed to could be on the horizon following the recent performance of bond and equity markets.