There are many people who hesitate to step into the world of investment because they think that they do not have enough time, experience and knowledge. By removing these obstacles, allowing everyone to freely invest in the American Stock Exchanges and soon Borsa Istanbul, and offering an accessible, fair and democratic investment experience for everyone, Midas evaluated the 2022 investment trends for individual investors:
There are both positive and negative predictions for this year. While some think that the rise in the stock markets will continue as the vaccination accelerates and the economies get rid of the effects of the pandemic, others warn that there will be huge losses.
One such warning comes from Merryn Somerset Webb, Managing Editor of Money Week. The S&P Index, which represents about 75% of the shares in the US Stock Exchanges, has risen close to 2021% throughout 27. Although those who invested in the shares in the index, which reached a historical record level in 2020, hope this trend will continue in 2022, The Financial Times In an article he wrote for Webb, he warned that this might not be possible.
The continuation of quarantines, albeit for a short time, in 2021 strengthened their support for central banks. However, this led to serious inflation increases in many countries. On the other hand, this situation; Although it was a negative development, it had a positive impact on economic growth and company earnings in 2020 compared to 2021. In fact, in 2021, the increase in company revenues reached 43% in the USA and 73% in the UK.
In addition, in 2021 budget deficits (that is, expenditures exceed revenues) rose to the record level of 1945 in both the USA and the UK.
The closure of the Suez Canal for a long time led to supply and supply problems in many sectors.
In addition, the negative impact of the pandemic on business life had a very negative impact on the labor market.
Unsurprisingly, inflation increased in such a year, market support from central banks began to ease, and the Omicron variant once again changed the outlook for the pandemic.
According to Webb, the end of central bank monetary incentives after ten years of enthusiastic expansion programs in this context means the end of "free money" for the market. Here is Webb's statement on the matter:
“Given all this, 2022 looks like it will come with an unusually wide range of possibilities. But the stakes are very high. 2022 may be less dangerous to your health than 2021, but I doubt it could be more dangerous to your wealth.”
Half of the Glass: “Earnings may outweigh growth and valuation concerns.”
There are also those who have positive expectations for the next year in the stock markets. Kerry Craig, Global Market Strategist for JP Morgan Asset Management, expects positive returns from U.S. equities in 2021, albeit on a smaller scale than in 2022.
According to Craig, the positive outlook for company earnings remains solid. But Craig also warns:
“Given the weight of growth stocks on the stock market, with interest rates looming and a big boost from inflation expectations, this could lead to a dip for stocks.”
Despite this, Craig offers some hope, stating that this is not the main scenario envisioned and that earnings strength, growth and valuations are expected to outweigh in 2022.
Per Stirling Asset Management Director Robert Phipps, while talking about the pressure on growth stocks (such as Tesla, Nvidia and Netflix), in parallel with Craig, states that the performance of value stocks (such as Intel, Coca-Cola and HP) may come to the fore this year.
In 2021, while the prices of growth stocks increased tremendously, value stocks performed relatively poorly.
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