José Luis Jiménez: “The dichotomy between recovery and curbing inflation will be the key theme of 2022”

This year could be defined by a return to normality and recovery. In fact, our country is set to receive EU funds with the clear objective of reversing the damage caused by the pandemic over the past two years. However, leaving aside the coronavirus-related risks and the current geopolitical crisis in some regions, “the dichotomy between curbing inflation and economic recovery” will be the key theme of 2022.

This is the opinion of José Luis Jiménez, chief investment officer at MAPFRE, who also expects the ECB’s policies to normalize: “Both long-term and short-term interest rates should go up, while negative rates should end.” In a market increasingly distorted by monetary policy, he warns, “we must watch for interest rates to start normalizing.” “2022 could be a complicated year if expectations suddenly change,” he emphasizes.

This could also be an interesting year “for both risk assets, especially European and American equities, and alternative assets.” Assuming that the markets recover a certain degree of normality, "cyclical sectors and those with a value focus" should be among the top investment options.

Beyond the possibilities that stock markets may offer in such a volatile context, “funds with responsible investment criteria are a great opportunity for investors.” As examples, he cites the MAPFRE Capital Responsable fund, which has increased more than 5% annually in the last three years, and the MAPFRE Inclusión Responsable fund, which has grown more than 30% in the same period.