Citi analysts expect growth to endure. The 28% price rise for global equities over the past 12 months is a source of risk for investors but they believe global stocks could produce yields of high single digits in the next year. 

Be not afraid of slower growth

“The most likely scenario is that global EPS growth rates could average 7%-8% over the next two years.”

“Global equities, with dividends and price appreciation, could generate mid to high single digits returns for the coming year. But for bond investors, the yield environment points to another year of negative real returns for global bondholders, but less negative than in 2021.”

“Global growth may exceed 5.5% in 2021 and fall below 4.0% in 2022.”