According to the Bank of America (BofA), investors have been allocating heavily to global equities over the last 12 months, exceeding the combined allocations of the past 19 years. The result? Inflated valuations driven by large inflows as opposed to improving fundamentals.
With the Federal Reserve forecasting 3 interest-rate hikes in 2022, Lighthouse Canton's Investment Consulting Team explains why investors should keep an eye on corporate defaults and expect possibly higher volatility next year. Read more in our analysis of the situation below.