One of Doxa’s axioms is “every number has a story and every story can be told in numbers.” It’s a good one to live by given the many narratives we sift through daily – the sheer volume of information in our digital age is like drinking from a fire hose. For us, everything is about finding the signal in the noise. Through all the Covid variants, meme stocks, and strange dog coins of 2021, the economy is incredibly sound and its foundation is solid. However, changes are coming in 2022. Pandemic-era government support is ending and rate increases are on the horizon.
Luckily, our economy looks to be very resilient. A strong consumer, a healthy labor market, and good housing fundamentals combine to provide strong pillars for another good year of growth. In portfolios, we’ve shifted to our mid-cycle playbook, which means we favor a more balanced approach focused on high-quality businesses. Our secular themes of housing/electric/data/content remain very well-positioned for the year. Another one of our sayings continues into 2022 – we’re optimistic, but will allow for setbacks.
The outlook this year is packed with charts and gets pretty detailed, but the summary box on the first page hits all the points. The always popular housing outlook starts on page 7. Enjoy!