After all the grief experienced in 2021, investors are now opening a new chapter for 2022 trading.
However, there are several key factors that will affect the market and need to be emphasized by investors this year. Among them are:
1) Inflation
⦁ Along with the sharp recovery in economic activity after the pandemic, the threat of high inflation has become a major concern for the market. Some upside risks are expected to persist in the long run due to global supply chain disruptions.
2) Tightening of Monetary Policy
⦁ 2022 will see the world’s major central banks take further steps to ease the heat of inflation and at the same time support a continued economic recovery.
3) Covid-19
⦁ The world is not yet free of Covid-19. Following the Delta and Omicron variants, the emergence of increasingly powerful new variants will continue to cause uncertainty in the market and hamper the recovery of the world economy.
4) Commodities
⦁ 2021 carries a different meaning for commodity trading especially crude oil and gold. Crude oil ended 2021 trading better, while gold was disappointing.
⦁ The question now is, to what extent will commodity trading grow in 2022? Will inflation change the fate of these two major commodities?
5) Geopolitics
⦁ Geopolitical instability can pose a major threat to the market, especially the post -Brexit issue which still plagues the market and has the potential to stifle UK economic growth.
⦁ Moreover, the growing tensions between Russia and Ukraine and China’s stance on Taiwan cannot be ignored at all.
