Today, Chief Trends Strategist Matthew Carr and Engineering Strategist David Fessler will each provide their top five forecasts for the year ahead. These predictions span the general financial markets, cryptocurrencies, renewables, precious metals and more. And their insights could help you position your portfolio for success in the year ahead. Let's take a look... Matthew Carr U.S. Stocks Struggle: We're entering the second year of the U.S. presidential cycle. With midterm elections and the inevitable shift of power in Congress, the second year tends to be a difficult one for stocks. I believe we're in for a market similar to what we saw in 1990, 1994, 2002, 2014 and 2018. Expect less-than-favorable year-over-year growth comparisons. If the Dow finishes 2022 up more than 3.1%, I'll consider that a victory. Cryptocurrencies Crash: Bitcoin, Ethereum and a whole host of other coins set all-time highs in 2021. A lot of that momentum was triggered by Bitcoin's reward halving in May 2020. A reward halving leads to a two-year bull market. But that bull will transform into a bear in 2022. This is another four-year cycle that we've seen play out time and time again. Crude Tumbles to Less Than $60: Crude oil consumption has exceeded demand for five consecutive quarters. But inventories will once again begin rebuilding in 2022. We can also see "backwardation" in the oil futures market - meaning future prices for crude are less than the current price. I think U.S. oil will decline into the $50 range - and maybe even below it - in the year ahead as the market normalizes. Gold Catches a Bid in 2022: During times of uncertainty, safe havens perform well. And gold is one of the most recognized and embraced safe havens out there. This is why gold has averaged a 16.6% gain during midterm election years. I expect the precious metal to revisit the all-time highs it set in 2020 before cooling off in 2023. Chinese Tech Rebounds: One of the worst-performing sectors globally in 2021 was Chinese tech. The Hang Seng Index fell more than 11% last year, but the Hang Seng Tech Index tumbled more than twice that amount. All the concerns over regulations and delisting will fade in 2022, triggering a massive rally in this woefully undervalued group.
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