Once again, we have waved goodbye to another year in which our lives were on hold. However, when one year ends, another one begins, and we now get to welcome another annum to get it right… hopefully.
The past couple of years have been defined by COVID-19, lockdowns, vaccine rollouts, more vaccine rollouts, new variants with Greek names, more lockdowns, reopenings and mixed signals.
Once it started to feel as though the worst was behind us, the Delta and Omicron variants reared their ugly heads and brought more uncertainty. The pandemic’s continued effect on the economy is so significant that both returning to normality and full economic recovery is still beyond our reach.
Having said that, one constant is that the pandemic is still driving markets. So, what does that mean for 2022?
What does the future hold for stocks?
It seems that the post-COVID market rally has already ended before it began. All three major US indices performed strongly throughout 2021 – however, stock markets may have already priced the gains of reopened economies, even if the latter is in an on-off mode.
FAANG and consumer stocks may struggle as the uncertainty created by inflation and their 2020 rally may have taken the wind out of them. Moreover, the supply chain challenges and the global semiconductor shortage will probably not be overcome soon. As a result, chip shortages will continue to impact sales and thus markets.
Investors will probably look elsewhere for returns and new opportunities. Smaller to mid-size caps and non-US stocks could potentially be among the 2022 surprises.
Furthermore, the 2021 trend of internet-driven companies will possibly continue this new year. In fact, a whole bunch of new businesses are ready to get listed in the next 12 to 18 months.
ESG (ethical, social and governance) seems to be a key economic determinant. Global warming and clean energy are among the trends poised to surge in 2022.
In tech, cloud computing, data analytics and artificial intelligence have great potential to grow enormously within the next few years.
Then, there are always the hot ones that people are always talking about: the Metaverse, NFTs and decentralised finance (Defi).
Are you ready to dive into a new year of CFD trading? If the answer is yes, then open an account with Eurotrader and kick off your 2022.