Investing Expert Trends and Predictions for 2022

2021 was an eventful time. The pandemic entered its second year and Reddit shook up the stock market. Stocks like GameStop and AMC were trading much higher than their companies were worth thanks to r/WallStreetBets.  It made many in the business wonder what other trends could pop up.

Fortunately, the experts of Money Morning have some insight on 2022 investing trends.

What Investing Looks Like Today

Reddit wasn’t the only thing that made 2021 worthy of the history books. Food and even used cars saw record price increases. This trend will continue in 2022 because of inflation.

It’s worth noting that inflation isn’t caused by a single element. Many different elements work together and it’s one of the reasons the economy is so complex. According to the experts at Money Morning,

“Each component is in play today in a way they haven’t been individually or collectively for decades. We will see many of the component pieces of inflation explode and implode in the quarters ahead and move and shake markets in the process.”

Besides inflation, younger investors playing by their own rules are also here to stay.

Another factor that’s hard to ignore is China’s economy. China has not had a Great Recession nor a depression in the last four decades. But no economy is perfect. As one Money Morning expert said,

“On the outside, China seems to be the dragon of legend that has come to life. But underneath what you find are actors holding up an elaborate dragon costume.”

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The Benefits and Risks of Investing

Stocks can be risky even without the infamous “stonks” from Reddit. You could lose big money if you’re not careful. They’re also stressful if you don’t know what your goals are or what you want out of trading. 

But there are still a lot of benefits to getting into the market. It’s becoming easier with apps that allow you to create an account and start trading fast. You can also sell stocks that aren’t doing well within the same apps. Perhaps, you can invest in the largest defense contractors in support of military operations. Just remember to map out your goals and read up on emerging shifts and trends.

2022 Investing Trends Can You Expect

With their collective fingers on the pulse of the market, Money Morning experts have some insight into 2022 investing trends. Tech stocks were dumped near the end of 2021, but they may be in favor again,

“Especially in the second half of the new year. We’re likely to find solid strength among large-cap tech leaders.”

This is largely due to inflation. Smaller tech companies will need to raise prices to keep up while large-cap companies like Apple can skip price hikes. Apple stock (AAPL) could be the way to go.

Nvidia Corp. (NVDA) is also a good bet since it’s used in many fields like electric vehicles, AI, and computers.  

Avoid the so-called “COVID plays.” These are companies like Zoom Video Communications Inc. (ZM) and Teladoc Health Inc. (TDOC). Despite Zoom and Teladoc being used heavily in the pandemic, both of their stocks are 55% less than their previous highs.

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What to Know Before Investing

Before taking advantage of the 2022 investing trends there are a few things to do, like:

  1.     Map out your goals. What do you plan to gain? How much can you honestly put into the market?
  2.     Think about your risk appetite. How much risk are you really willing to take? Can you afford to lose money?  How much? Are you comfortable with taking risks if there’s a chance for a big payout? Or do you want a stock that’s steadier and pays dividends?
  3.     Diversify your stocks. This advice is repeated again and again because it’s true. You don’t want to invest in one stock. Having a mix of different stocks ensures that you’ll be OK if one falls in price.
  4.     Watch emerging industries. See how they develop before investing.

According to Money Morning experts, there are a few businesses you should check out. One such business is cannabis. With more states legalizing the plant for various uses, cannabis beverages and tech may take off. Also, look out for distribution. There may be some innovation there soon.

Other businesses to check out are NFTs and Ethereum. It’s been predicted that Ethereum could go as high as $12,000 in 2022 seeing as it rose 983% last year.

How Money Morning Can Help

Investing is risky. Without solid, actionable information, whatever you put into the market could be gone quickly. This is where Money Monday can help. It doesn’t matter if you’re planning your retirement or just starting to trade, we’ll give you reliable information that can help you reach your financial goals. Contact Money Morning today to see what we can do for you and your portfolio.

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