Looking To Invest? Indicators to Look Out For Before Buying Assets in 2022
2021 has witnessed many highs and lows in the stock market, a usual characteristic– even as the effects of the pandemic rages on, but to what end? Some good news for traders: in October 2021, the S&P 500 surged 23 percent as investors claim the expansion to be the biggest monthly uptick in 2021. The Dow Jones, Russel, and NASDAQ Composite have all followed a similar upward trend with all posting average gains of over 16 percent, creating an attractive pattern that points to a rosy 2022. Even still, the volatility of the stock market might prove to be a disappointment.
However, any investors will try to look at the current issues before they can start trading BTC or buy shares on platforms such as PrimeXBT; if the supply chain problems persist, along with the high inflation rates, the October positives might tank soon. Whether the current pandemic will have a say in future market trends remains a mystery, but historical data points to a pleasant picture during the festivities and well into the new year.
What Should Traders on PrimeXBT Expect Early 2022?
Early indicators point to a bullish trend early next year as the current gains witnessed across various markets might spill into 2022. Further projections show that next year looks like a promising year, as healthcare experts see it as the turning point for the current pandemic; the U.S. also looks to shake off the pandemic drag and start its pre-pandemic economy.
Most likely, markets will have dealt with the supply chain issues that are currently limiting growth and inflation woes that have hit the heart of many economies. All this remains speculative.
COVID-19 vaccine reach in every part of the world remains vital; if the less developed regions catch up with the developed ones, investor confidence will probably shoot up. A significant point is that pharmaceuticals have had a good 2021 run, confidence in the companies has led to the fastest ever deployment of vaccines.
2022 will probably witness a shift to fight variants and new therapies to fight the pandemic altogether. Experts point out that when medication becomes available to deal with COVID-19, there will be a turnaround in the situation seen in 2020 and 2021.
S&P 500 Predictions for 2022
As mentioned, early indications when heading into 2022 remain on shaky grounds; no one can bet their wealth that next year will witness a significant rally. It is too early to tell.
Goldman Sachs and JPMorgan all have conflicting thoughts about next year. Goldman Sachs is predicting an 11.7 percent increase in the S&P 500 with the admission that some headwinds will distort this figure by some percentage in either direction.
The investment bank attributes the estimates it has given to the bounce in retirement accounts that will probably expand next year. However, the growth forecast by Goldman Sachs is still short of the one in 2020. Next year’s forecast is only higher than the 2015 to 2017 period in the last six years.
Other predictions paint a flat picture, with markets remaining stagnant all year. The Bank of America cites an annual finish of 4600 points for the S&P 500. That is a significant improvement considering it stands at about 4567 points in the early days of December 2021. Bearish trends will have the attention of the Federal Reserve moves that also have a grim prediction on the inflation rate.
The situation might mean action on whether to offload assets to keep them at manageable levels or shake the interest rates in a favorable direction, but one thing that stands is inflation will go into early 2022. The Federal Reserve might decide to reduce assets by selling or might increase interest rates, in all scenarios the bond and stock prices will take a hit, especially when the assets depend on market forces to push them—an angle the Federal Reserve is considering.
Conclusion
2022 will be a busy year in the stock markets for traders on leading platforms like PrimeXBT, as all predictions point to a significant increase in the S&P 500. It is too early to tell whether the woes of 2021 will go well past the first quarter of 2022.
However, many predictions have a positive outlook for the markets next year; it is expected that the shocks caused by COVID-19 would ease, though the discovery of the Omicron variant will frustrate the recovery. Are interested in investing? Why not check the best stocks to buy today and get the best returns!
