The year 2022 should be the “macro year” and the foreign exchange markets should take center stage in it. So far, positive returns from alpha currency strategise contrast with returns from traditional assets.
The various macroeconomic ingredients could well open opportunities in the foreign exchange markets, which, within a multi-asset strategy portfolio, can provide the stability required to overcome the obstacles on the horizon.
Read this article till the end to know much about the stock trading industry! Exness stock trading can be successful if you possess the necessary knowledge and skills.
The market tendencies in 2022
Admittedly, financial markets are off to a remarkable start to the year: the U.S. Federal Reserve is about to begin its first monetary tightening cycle since 2015; US equities, especially technology stocks, have experienced a significant pullback; and the outperformance of European equities undermined the principle of primacy of the United States.
At the same time, the emerging divergences between the monetary policies of the main economic powers have increased the volatility of the foreign exchange markets. This, in fact, creates opportunities for funds focused on currency trading and shapes a very favorable environment for such strategies.
Far from the quasi-tectonic turbulence, the evolution of the world currency market has been likened to a veritable crossing of the desert in recent years. A vacuum induced in particular by the suppression of interest rates by the major economies, the massive injections of liquidity by the central banks, and by the standardization of the world economic cycles under the effect of the pandemic.
The sectors with good perspectives
Energy
As the oil, gas, and chemicals industry evolves, it is imperative that companies develop innovative strategies and leverage technologies that will lead to a sustainable future. To help businesses adapt to a new energy future, we have developed a set of outlooks that address key aspects of the sector.
While global consumption will increase, 63% of experts believe that electricity demand in France and Europe in 2050 will decrease or not increase. A trend that could be felt as early as 2021. And this, despite a transfer of use to this energy for transport and heat.
The remaining 37% consider this thesis unthinkable. Be that as it may, the experts agree on one question: will a balance be found between the electrification of uses and energy efficiency efforts?
Industrials
The world of industry is currently experiencing one of its most profound changes since the industrial revolution. As manufacturers evolve to adapt to an increasingly connected and environmentally friendly world, three major trends are emerging for 2020.
Sustainable development will play a key role in industry in 2022, starting with no doubt with water. As water utilities work to improve their processes, every business at its own scale can make great strides in water conservation and recycling.
Technologies
As businesses increasingly depend on technology, investment in this sector will continue to accelerate. The sector is expected to grow by 5.3% in 2022, and the five-year growth outlook is very positive.
However, tech entrepreneurs need to tread carefully in this rapidly changing environment.
Check out the top four tech industry trends to watch:
- Strong activity in the mergers and acquisitions market
- Continued strong demand for qualified employees
- Cybersecurity as a business imperative
- Everything as a Service: Accelerating the Transition to Cloud Computing.
Healthcare
Industry leaders interviewed said they want to use data more to improve efficiency and quality of service, while better meeting care and cost expectations.
Leaders in the healthcare and life sciences industry predict that the healthcare experience of their customers will be the primary area of investment for the next three years. Modernization continues to be a big part of the innovation agenda, and significant investment changes are planned to improve cybersecurity, leverage analytics, and drive better interoperability.
Which stocks will perform in 2022?
It’s been years since experts announced the end of the bullish cycle of equities, it is true the longest in history. They draw up a style inventory of the many risks that threaten the equity markets, but which have not yet begun their march forward. Taking a long time into account sheds particular light.
The ratio of market capitalization to GDP of the largest countries is around 1. This ratio has become three times higher than it was for most of the 20th century, mainly thanks to rising prices.
Investments in the real economy
In a nutshell, investing in the real economy means participating in the financing of medium-sized companies by supporting them in their growth.
This type of investment has a direct impact on your economic environment. Supporting the real economy makes it possible to support the growth of a company, finance its acquisitions, or even support its international development projects.
Best S&P 500 stock in the past 12 months
Like the American indices, it too broke records last year.
For the first time in its history last June, it crossed the 20,000-point mark.
It was the stock of Baytex Energy that had the most remarkable performance: +467%.
High-performance funds on the funds side, we notice that:
- the Sprott Energy F gained 186.1%;
- the 3iQ Global Class A Crypto Assets (CAD) gained 123%.
High-performance funds among ETFs:
- the XEG iShares S&P/TSX Capped Energy gained 83.7%;
- Blockchain technologies HBLK ETF gained 65.5%.
The stocks wall street analysts heavily favor for 2022
- Alaska Air Group Inc.
- Caesars Entertainment Inc.
- Southwest Airlines Co.
- West Texas Crude oil CL00
- Generac Holdings Inc.
- Bath & Body Works Inc.
- General Motors Co.
Conclusion
Spring sprouts are manifesting, both literally and metaphorically, with a strong economic recovery in many countries. The latter has regained a vitality that had not been seen since 2019. Another major sign of renewal: is the growing divergence of monetary policies which determine the trends of the foreign exchange markets.
