ETF Stream and Amundi have surveyed investors from across Europe to further understand what their biggest challenges and opportunities are in 2022 as well as what has driven their investment decisions over the past 12 months . From the results , inflation and ESG are two strong themes that look set to dominate the minds of investors in the year ahead . As a result , we have selected three trends to look for from two key themes – inflation and ESG – as we head into 2022 .
6 . Inflation was the biggest investment challenge of 2021
Inflation was selected as the biggest challenge of 2021 by over half of respondents ( 56 %), the highest across all options provided . With inflation soaring to three-decade highs in the US last year , it is no surprise this has been a tough test for investors looking to navigate markets in the post-pandemic world . Elsewhere , 40 % of respondents selected volatility as their biggest challenge while the hunt for yield was third with 36 %.
What were your biggest investment challenges in 2021 ?
Inflation 56 %
Volatility 40 %
Hunt for yield 36 %
Correlations 29 %
Meeting sustainability requirements
Other 17 %
7 . Transitory or regime change ? Inflation divides opinion
How do you currently view inflation ?
While inflation was the biggest challenge for respondents in 2021 , there remains a significant divide in opinion about whether the soaring figures are simply transitory or the sign of a regime change . CPI is currently at 4 % year-on-year in the US , double the Federal Reserve ’ s inflation target , however , is this the result of the post-pandemic recovery or a long-term shift ? Some 41 % of respondents said there is an inflation regime change while 44 % said it was transitory and 15 % said they were “ unsure ” highlighting the split in views .