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There are a lot of factors to consider when predicting stock market trends for 2022. The global economy, interest rates, political instability, technology, and other factors will all play a role in how the markets perform. When it comes to technology, one needs the best trading apps UK to be well-placed in the market. That said, there are some general trends that we can expect to see. Here are three such predictions:
With the recent COVID-19 pandemic event, global central banks have entered a new phase of easing to transition through economic concerns. These actions resulted in hyperactive consumers while inflationary trends were somewhat muted by this change for markets worldwide – leading us into what some may call “the age of consumerism.”
Stock Market Trends For 2022
Covid shifts global market cycles into faster and broader trends
The markets are in a late-stage Bullish rally phase, resulting from the COVID-19 virus. The economic event process accelerated by inflation has resulted in a speedy, possibly 24 – 36 month extreme cycle. The continued impact of COVID-19 is that consumers have shifted away from metropolitan areas, driving up prices for Real Estate and Consumer Goods (Technology). In addition to this relocation pattern within our population centres themselves, there has also been a movement towards purchasing goods locally since many supply chains were slowed down or lockout periods persisted.
This change in spending habits led many people to expect longer-term recovery times ahead to alter their consumption patterns accordingly. This ultimately helped stimulate economic growth after the virus’ first wave passed through.
The rising price of US stocks in the late 2020s led many retail POS system investors and consumers to focus on their investment portfolios. However, this change also prompted them to take a second look at what they were spending. It was then that many discovered how much more money could be made by investing instead! After all: if you’re not trading your time for anything else but cash assets like gold or oil, there’s no reason why someone who works 40 hours per week can’t earn enough just from doing anything BUT making trades during down markets.
Hyper-Kondratieff market cycle (Seasons)
Over the past 24 months, we’ve completed a Hyper-Kondratieff Seasonal cycle phase. The current one can be considered an extended summer/autumn season lasting well into early 2022, with price trends becoming exaggerated during this time. Following that comes to winter, which will likely last longer than usual and affect even more aspects of our lives due to its severity on economic activity.
The global economy is in a never-before-seen state of turmoil. The recent COVID event has pushed inflationary pressures onto the markets, but it seems like central banks are staying too cautious. They continue to yield support through low interest rates or easy cash dispensation policies even when presented with an opportunity at taking more active control over monetary policy settings.
One of the most interesting aspects of market trends is how they can change so quickly. In this short period, traders need to be prepared for any number of events over 12-24+ months, including extreme price movements in asset classes/sectors that are trending positively. We are likely to see what appears like Blow Off Rally Phases where peaks lead only into inevitable crashes later on.
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