Covid becomes our friend - 2021 wrap up
Dear all,
It's time to wrap up 2021 and outline what has happened based on an analysis of S&P500 as a major index.
At first glance (and as the title suggests) covid stayed with us throughout the whole year causing volatility in the market. Average correction caused by C19 and its new variants equaled 4.95%, with the biggest decrease of 5.7% caused by the Delta strain. Overall the S&P500 returned close to 30% which taking all the worrying events into account gives an excellent result. When it comes to non-C19 events, Evergrande problem
Now, as we less outlined major events of 2021 (regarding us500) let's cover a short prediction of what may/ may not happen in 2022. Without any doubt, 2022 will be exceptionally interesting. Firstly, we will experience already announced tapering, which is supposed to end by summer 2022. Secondly, the current (i.e. 4th) wave of C19 caused by the Omicron variant is widely believed to be the last one as the kids have been infected. Moreover, at the beginning of 2022 (what we can already see) 3 billion people are said to be infected including many. This fact may suggest a pullback from record highs and more corrections caused by C19. However, on the other hand, as a vast number of people will get infected, they will build global resistance and thus a bad environment for C19 to develop new variants, not to mention medicines produced by Pfizer, etc. Worth mention is also rising tension between Russia and Ukraine, where the former one is expected to attract Jan/Feb. These possible initial events will shed a light on the rest of the year. Diversification and liquidity (including differentiation) seem to be the key to uncertainty and thus volatility on the market in 2022.
Disclaimer!
This post does not provide financial advice. Always do your own analysis. Be aware that only you are responsible for your trades. Trade safe and keep in mind the risk!
It's time to wrap up 2021 and outline what has happened based on an analysis of S&P500 as a major index.
At first glance (and as the title suggests) covid stayed with us throughout the whole year causing volatility in the market. Average correction caused by C19 and its new variants equaled 4.95%, with the biggest decrease of 5.7% caused by the Delta strain. Overall the S&P500 returned close to 30% which taking all the worrying events into account gives an excellent result. When it comes to non-C19 events, Evergrande problem
Now, as we less outlined major events of 2021 (regarding us500) let's cover a short prediction of what may/ may not happen in 2022. Without any doubt, 2022 will be exceptionally interesting. Firstly, we will experience already announced tapering, which is supposed to end by summer 2022. Secondly, the current (i.e. 4th) wave of C19 caused by the Omicron variant is widely believed to be the last one as the kids have been infected. Moreover, at the beginning of 2022 (what we can already see) 3 billion people are said to be infected including many. This fact may suggest a pullback from record highs and more corrections caused by C19. However, on the other hand, as a vast number of people will get infected, they will build global resistance and thus a bad environment for C19 to develop new variants, not to mention medicines produced by Pfizer, etc. Worth mention is also rising tension between Russia and Ukraine, where the former one is expected to attract Jan/Feb. These possible initial events will shed a light on the rest of the year. Diversification and liquidity (including differentiation) seem to be the key to uncertainty and thus volatility on the market in 2022.
Disclaimer!
This post does not provide financial advice. Always do your own analysis. Be aware that only you are responsible for your trades. Trade safe and keep in mind the risk!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.