Dean Tan, Freelance Trader | Thursday, 22 September 2022, 13:20 IST
Exchange-traded funds (ETFs) will continue to proliferate in trading online 2022. Faced with a risky environment, more and more investors will adopt cryptocurrency. Moving away from large-cap stocks will be a good thing.
These are the main tips from a group of experts gathered during a roundtable on the trends to expect in investment in the coming months. They were brought together at the invitation of sites like Exness.
They lent themselves to this exercise while inflation is on the rise and the Omicron variant is wreaking havoc all over the planet. Not to mention the Federal Reserve, which is expected to raise interest rates in the coming year.
Faced with this uncertain landscape, the panelists recommend taking a fresh look at the markets.
After three good years in equity markets, he believes that large-cap growth stocks, which include shares of top tech companies, will take a “pause” from major market gains. He therefore urges investors to look for other sources of investment that can promise profits, such as small-cap growth stocks or small-cap value stocks.
The Vogue For Cryptocurrencies
Cryptocurrencies should continue to capture the attention of investors in 2022. Since the start of the pandemic, the market capitalization of cryptocurrencies has reached more than 1,000 billion dollars (B$) while decentralized finance (DeFi) and tokens non-fungible (NFT) have become the latest buzzwords.
Currency volatility that is expected to continue through the year will lead to greater adoption of cryptocurrencies across the global economy.
In 2021, the first bitcoin ETF was launched in the economy. Leah Wald, CEO of Valkyrie Investments, expects there will be many more bitcoin-adjacent ETF launches that investors are showing an appetite for. By 2021, these investment vehicles had collected more than $900 billion.
The movement should continue, recalling that large investors have already invested in large-cap stocks with money in their funds. This means that risky assets, like bitcoin, should gain favor with profit-seeking investment managers.
News and Forecasts of Central Banks
Goldman Sachs experts have made changes to their previously published forecast for the future policy of the US Federal Reserve. The reason for this was the statistics on inflation in the United States, it turned out to be worse than forecast. Consumer prices rose 7.5% year-on-year in January after 7% in December. The forecast for inflation in January was at the level of 7.3%.
Bank experts now expect the Fed to decide on a rate hike at each of its remaining meetings this year. And this means that the central bank will raise the rate 7 times. By the end of 2021, the US Federal Reserve rate will be at 1.85%. Earlier, Goldman Sachs experts expected five rate hikes.
They note that so far there are no signs that inflation in the United States will start to slow down. In such a situation, the Fed will begin an aggressive tightening of monetary policy.
The Reserve Bank of Australia may raise rates four times in 2022. John Edwards, who previously served on the Board of Governors of the RBA, gave his forecast regarding the policy of the Australian central bank. He believes that the regulator will begin to increase the key rate in August, and by the end of the year the Central Bank will make such a decision four times.
As a result, the rate will be raised to the level of 1%. John Edwards said that raising the rate only once does not make sense. At the same time, the Central Bank of Australia sees no reason to revise the rate level yet. It will be possible to tighten the policy only if the growth rate of wages by 3% is achieved. However, this will not happen until the middle of next year.
A regular meeting of the Central Bank of Moldova was to be held on the issue of the interest rate. However, it was canceled due to information leaks. The regulator intends to investigate the reason for the appearance of information regarding one of the scenarios for the decision of the Central Bank to change the key rate.
One of the deputies of the Moldovan parliament wrote on social networks that following the meeting, the Central Bank would decide to raise the rate by 2 percentage points. It is currently at 8.5%. At the same time, the deputy noted that such a decision by the regulator would harm the country's economy, as it would lead to a decrease in investment activity.
He appealed to the Central Bank to change the direction of its attention. According to the deputy, the regulator should solve the problem associated with consumer lending.
US Consumer Market
The results of a study conducted by the US National Retail Federation showed that on Valentine's Day this year, the cost of US citizens per American could be $175.41 compared to $164.76 a year earlier. At the same time, total spending will reach $23.9 billion, an increase from its previous year value of $21.8 billion.
In the United States, retail growth was 7.2% last month from a year ago. Online sales increased by 10.4%. Sales of luxury goods jumped 45.3%. Clothing sales increased by 37.6%. A high rate of sales growth was also recorded in restaurants. It amounted to 36.7%. Due to the increase in consumer activity in January, there was an increase in sales in large shopping centers.
Investments in Advanced Technologies
The South Korean Korea Investment Corporation, which manages a $200 billion state fund, intends to increase investment in American Silicon Valley startups developing the metaverse and artificial intelligence.
These companies in the fund are classified as alternative assets in the same way as the hotel business, the recovery of which, according to the fund's experts, will begin to gain momentum after the end of the pandemic rapidly. The share of such assets in the fund's portfolio will grow to 25% by 2025, according to the head of the corporation, Soun Ho Jin. According to his estimates, over this period, the total assets of the fund will reach $300 billion.
Swedish automaker Volvo Cars is investing SEK 10 billion over the next few years in a plant located in the municipality of Gothenburg as part of its plan to switch to electric vehicles. It is planned that this enterprise will produce cars exclusively with electric motors. To achieve this goal, innovative and environmental technologies will be introduced into the production processes at the plant, which bears the name Torslanda.
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
.jpg)
