The biggest theme that will drive global equities in 2022 is likely to be tighter liquidity, especially in the US. This is according to fund managers with global funds for sale in South Africa.

The increase in interest rates in many parts of the world will significantly impact the financial economy.

Another major theme is expected to be the rotation from growth to value stocks. Higher interest rates will also favour financials and banks and hurt expensive stocks like technology counters.

Fund managers also expect communications services, consumer staples, energy, and materials stocks to do well this year.

However, global equity returns are forecast to be lower than 2021, which was a year of recovery from the disruptions wrought by Covid-19.