Major Stock Market Predictions for 2022


We begin the year with the markets in high spirits. The year-end S&P 500 objective of 5,000-plus calls is being sounded by strategists. Despite the fact that inflation remains obstinately high, economists’ profit forecasts continue to rise. Prior to the Federal Reserve’s interest rate decision, stock values are substantially above their historical averages. A robust IPO and merger pipeline that we are currently witnessing may also help several firms maintain a bid.

Stocks are expected to have a great year in 2022, according to history. Whenever the S&P 500 had an annual total return of more than 25%, equities often increased the next year, according to Keith Lerner, who is the co-chief investment officer at Truist Advisory Services. Stocks rose 82% of the time with an average gain of 14%, throughout the 71-year span.

In the grand scheme of things, this seems quite encouraging. Based on the upbeat mood in the markets to start the year, experts have made a few market predictions for 2022, which will help you grab the best stocks and let go of the ones that have a bleak future ahead.

  • Housing industry will boom further

Higher mortgage rates and a lack of homes for sale will continue to drive up home prices, which are expected to rise by at least 10 percent by 2022. Shares of Sherwin Williams and Home Depot are trading at record highs going into 2022, so it’s no surprise. 3G Capital, which often invests in food firms, recently paid a 70% premium to Hunter Douglas, a blinds manufacturer.

  • Kohl’s will need to rejig its top-management

New management at Kohl’s is required since the company’s stock has underperformed in recent years, and the company’s fundamentals have deteriorated under the existing leadership. In 2021, the corporation was the target of activist assaults and more might follow this year if the company’s leadership isn’t reshuffled.

  • Coinbase & Robinhood will bounce back

The shares of both Coinbase and Robinhood closed 2021 far below their all-time highs, with the latter by far the most depreciated. Even though both of these equities have been plagued by regulatory worries and other troubles, market predictions for 2022 suggest that they will regain their popularity, given the significant brand recognition that both companies enjoy. 

  • Two tech giants will become $3 trillion companies 

With a potentially strong first half of the year, Microsoft and Apple will close 2022 with market capitalizations over $3 trillion.

  • At least one market correction is more than likely

There will be a minimum of one 20% market downturn in 2022, and it’s likely to happen sooner rather than later. It’s hardly a secret that many financial experts are concerned about how the stock market will respond to a rise in interest rates, given that it is now trading at record multiples and powered by a few of tech firms. Those hikes are well and truly on the way. There is no need to pay out in January, though. It is recommended, though, that you begin researching suitable defensive assets as a matter of urgency.

We hope you found this article helpful. Please be reminded that the above market predictions for 2022 are based on the opinion of experts. It is only for educational and information purposes and is by no means financial advice. 

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We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission (“SEC”) at CSA https://www.securities-administrators….

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