After two consecutive years of gains for stock markets around the world, and with elevated commodity prices, one should be asking how 2022 is going to be. Despite the strong momentum, uncertainty remains elevated, due to several important factors that will be discussed.
Inflation to dampen positive outlook
The focus remains on inflation and its impact on economic growth. There are already concerns that inflation is eroding wage gains, which is why it would be important to see whether financial assets are to be viewed as a proper hedge. For now, there does not seem to be a better alternative, but as valuations are overstretched and as future returns lower, a continued buildup in inflation figures and expectations could prompt a larger correction in stocks and a flight to safe assets like USD, Swiss Franc, or even gold.
Changes in the monetary and fiscal stance
Asset valuations remain decoupled from fundamentals and price developments are mainly driven by liquidity. As a result, 2022 could mark a turning point in case markets start to become shaky, as investors start to question how much capital can be poured in. Central banks are already shifting their monetary policies and futures markets are pricing in rate hikes for next year. Also, the fiscal support is gradually being removed, raising the question of whether the private sector can manage to compensate for that.
The wide public can take advantage of different conditions
Although current conditions favor a continuation of the stock market bull run, as well as a stable currency market and topping commodity prices, things can go either way. InvestingCrypto’s expert analysts warn that the consensus can be easily dampened and the already established trends could reverse.
To take advantage of both bullish or bearish market conditions, traders have the option to work with trusted trading brands such as InvestingCrypto, where they can trade CFDs, benefiting from a variety of benefits.
This broker has been in the retail trading industry for long enough and now offers a customized trading infrastructure, built around a fully-optimized platform developed in-house. The solution integrates professional trading tools and proprietary market research, supporting retail traders when they need to make difficult decisions as markets unfold in real-time.
With InvestingCrypto, anyone is welcome to open a live trading account, since the broker has a generous account types offer, which has clearly taken into consideration those with little funding available for trading. Regardless of choice, however, all users can benefit from flexible leverage, margin loans, daily market news, the trading academy, an account manager, and weekly portfolio progress.
At investingcryp.com traders can find a variety of assets, including forex, indices, commodities, shares, and cryptocurrencies, which is why the uncertainty that lies ahead in 2022 can be counteracted with proper diversification across many asset classes.
Ultimately, it doesn’t even matter if markets continue to go up, as these derivatives facilitate short-selling as well. Complacency is currently the norm in financial markets, leaving investors and traders vulnerable in the face of unexpected events
Alt-text: trading financial markets in 2022
Source: https://unsplash.com/photos/Wf1opKy4iaI
Changes in the monetary and fiscal stance
Asset valuations remain decoupled from fundamentals and price developments are mainly driven by liquidity. As a result, 2022 could mark a turning point in case markets start to become shaky, as investors start to question how much capital can be poured in. Central banks are already shifting their monetary policies and futures markets are pricing in rate hikes for next year. Also, the fiscal support is gradually being removed, raising the question of whether the private sector can manage to compensate for that.
The wide public can take advantage of different conditions
Although current conditions favor a continuation of the stock market bull run, as well as a stable currency market and topping commodity prices, things can go either way. InvestingCrypto’s expert analysts warn that the consensus can be easily dampened and the already established trends could reverse.
To take advantage of both bullish or bearish market conditions, traders have the option to work with trusted trading brands such as InvestingCrypto, where they can trade CFDs, benefiting from a variety of benefits.
Alt-text: market forecasts for 2022
Source: https://unsplash.com/photos/vfLZeuFi1BY
This broker has been in the retail trading industry for long enough and now offers a customized trading infrastructure, built around a fully-optimized platform developed in-house. The solution integrates professional trading tools and proprietary market research, supporting retail traders when they need to make difficult decisions as markets unfold in real-time.
With InvestingCrypto, anyone is welcome to open a live trading account, since the broker has a generous account types offer, which has clearly taken into consideration those with little funding available for trading. Regardless of choice, however, all users can benefit from flexible leverage, margin loans, daily market news, the trading academy, an account manager, and weekly portfolio progress.
At investingcryp.com traders can find a variety of assets, including forex, indices, commodities, shares, and cryptocurrencies, which is why the uncertainty that lies ahead in 2022 can be counteracted with proper diversification across many asset classes.
Ultimately, it doesn’t even matter if markets continue to go up, as these derivatives facilitate short-selling as well. Complacency is currently the norm in financial markets, leaving investors and traders vulnerable in the face of unexpected events