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Hi Reader, here's what you need to know for December 31st in 2:59 minutes.

🍾 That’s another weird year in the bag, but you’ve been great company every step of the way. Let’s meet back here on January 5th for one that’ll be smooth sailing. No hiccups whatsoever. We almost guarantee it.

Today's big stories

Economists have made their predictions for the global economy in 2022
We’re highlighting our analysts’ best Insights, giving you another opportunity to revisit this year’s top actionable ideas – Read Now
We take a look at what’s on the horizon for stocks around the world

Fairytale Ending

What’s Going On Here?

Economists have high hopes for the global economy in 2022, but a lot rides on whether central banks serve something up that’s too hot, too cold, or just right.

What Does This Mean?

Economists reckon the “real” – that is, inflation-adjusted – global economy will grow by 4.4%, driven primarily by the US, Europe, and China’s respective 3.9%, 4.2%, and 5.3%. But there’s a catch: that growth – motivated by a recovery in consumer spending and a declogging of supply bottlenecks – could continue to push up prices, which is why economists are expecting inflation to hit 3.5% around the world next year. That might encourage the Federal Reserve (the Fed) to hike interest rates as soon as mid-2022, even if the European Central Bank (ECB) has said it’s not planning to do the same until at least 2024. But if inflation keeps bearing down on the region, it might be forced to change that position pronto…

Why Should I Care?

For markets: What’s a central bank to do?
The Fed is in a pickle: if the central bank makes borrowing more expensive by raising rates, it risks limiting economic growth as much as it does inflation. American shoppers only have so much cash to spend, after all, and they’re likely to buy fewer nice-to-haves if they’re confronted with expensive price tags. The Fed, then, needs to time its rate rises perfectly next year to enjoy the best of both worlds.

The bigger picture: Put down the dollar.
Goldman Sachs is expecting non-US stocks to do well next year, which doesn’t bode especially well for the US dollar. A wider choice of potential winners could encourage investors to sell their dollar-denominated American stocks in favor of those denominated in foreign currencies, which would push down the former’s currency versus others around the world.

You might also like: Inflation’s just one possible risk to your investments next year.

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Analyst Take

Three Reasons It’s High Time You Bought Some Crypto

Stéphane Renevier, Analyst

What’s Going On Here?

Cryptocurrency prices have been on fire over the past year.

And while this has made the crypto bulls more confident than ever, investors on the sidelines might be more suspicious than ever of a sharp pullback.

But whether you’re a crypto naysayer or just a rational skeptic, there are three good reasons for investing – and it’s not just the promise of high returns.

In fact, two of them are about what you can learn from investing in crypto, and how it could help bring your overall investment game up a notch.

So that’s today’s Insight: why you really ought to invest (at least a bit) in crypto.

Read or listen to the Insight here