2021 has left Wall Street happy with the gains obtained and the trend of the same remains bullish. The stock valuations are still well above historical norms ahead of the interest rates and investors seem to be following this upward movement of the market. But you are 5 predictions can give us some clues for this 2022, according to Brian Sozzi en Yahoo Finance.
The Co-Chief Investment Officer of Truist Advisory Services, Keith Lerner, discovered that, since 1950, when the S&P 500 had a total return of at least 25% in one year, stocks generally rose the following year. The result during that stretch of 71 years: shares advanced on 82% of the time, 14 out of 17 cases.
Average profit: 14%.
We are going to analyze these predictions one by one.
Stocks don’t go up forever
There is likely to be at least one 20% market correction in 2022. Any market professional will admit to being concerned about how a stock market trades at record multiples and is driven by a handful of tech stocks. (Apple, etc.) will react to a increase in interest rates. Those increases are coming. Now, this does not mean that it will charge in January. What it does mean, however, is to start doing your homework on possible defensive investments in your wallet.
The house will stay warm
The house prices they will probably upload another 10% (at least) in 2022as buyers try to beat higher interest rates at a time of incredibly low home inventory. It is not surprising that the actions of Sherwin Williams y Home Depot enter 2022 trading close to all-time highs. THE 3G Capital (which typically invests in food companies, see Restaurant Brands and Kraft Heinz) just paid a 70% premium to the blind maker Hunter Douglas.
It’s time to change
The new management in Kohl’s it has to happen as the company’s stock has underperformed under current management … The same goes for the fundamentals of the business. The company suffered attacks from activists (one is ongoing) in 2021 … and could see more in 2022 if there are no changes at the top (attracting people who adopt new ideas).
It’s time for another look
The actions of Coinbase y Robinhood they finished 2021 well below their all-time highs, even more so the latter. At some point in 2022, both stocks will fall back in favor with investors despite the regulatory concerns (among other issues). Both are tremendous platforms with strong brand recognition; it’s hard to see that those things aren’t being appreciated better by the market this year.
Big Tech Will Keep Winning
Microsoft and Apple They will end the year above $ 3 trillion in market capitalization, driven by strong performance during the first half of the year.