2021 offered investors a robust recovery from the early economic turmoil of the COVID-19 pandemic. But will it hold in 2022? Let’s take a look at 5 key types of assets which are predicted to deliver an edge in 2022.
Value stocks will outperform their growth counterparts, because equities are believed will help investors navigate an unlikely market environment and factors unique to the post-pandemic world.
- King Dollar
The dollar has had an excellent run, as most FOREX traders know, and you can expect it to do better in the long run. Less FED asset purchases and rate hikes will increase the USD’s value relative to other currencies and traders should expect further gains in the new year.
- Gold and Gold Miners
Downward pressure on US Equities and the FED backing off of support may scare investors out of the traditional equities. If investors are unable to trade stocks on US markets, looking for gold miners on exchanges that are available to you in your own country.
- Real estate
Real estate remains the preferred cyclical asset. It may suffer a loss of demand for office and retail space as a result of Covid-19 but the yields to be attractive and expect growth to resume as economies recover, and elevated REIT yields will mitigate against the upward pressure from bond yields.
Cash will be one of defensive assets of choice due to its low returns, low volatility and low correlation place it on the efficient frontier.
Cedrus Investments, as led by Mr. Rani Jarkas, a highly experienced and accomplished financial services executive, offers expertise in Private Wealth Management, Asset Management and Financial Advisory Services. A financial advisor can help you create an investment plan for 2022 and beyond. Reach Mr. Rani Jarkas, a trusted advisor, at Cedrus Investments.