Savita Subramanian, head of equity strategy, described the U.S. economy as "rip-roaring." But for investors, she predicted that 2022 would be a tougher year than 2020 and 2021 and the entire past decade.
"Stocks will be a better place" to be than other asset classes, Subramanian said. Small-cap stocks in particular could stand out in her view. Higher inflation bodes well for both value stocks and small-cap shares.
But she also expected that earnings growth would surpass multiple expansion as the primary driver of equities in 2022. That would be a reversal from the past two years.