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Talk of Fed rate hikes is unlikely to derail the recovery, while supply chain related inflation indicators should start to abate next year. While fiscal spending globally is unlikely to match this year’s massive stimulus, Citi Analysts believe a moderate amount of infrastructure and other social spending may be passed by the Biden administration, which could benefit selected industries, while offsetting tax hikes should only shave 2-3 percentage points off earnings per share (EPS) growth next year. Taking all these factors together, Citi Analysts expect a 7-8% annualised EPS growth over the next 2 years to sustain positive equity returns. Stay updated on the latest insights with Citigold. Receive up to S$7,476 cash when you join Citigold. Visit www.citibank.com.sg/ctgmf for details. Terms and conditions apply
