“The S&P 500 will triple in 2022.”
You might have read a bold prediction like that in the last week or so.
As 2021 ends, the market predictions for 2022 roll in.
And if you’re interested in a particular asset or sector, you won’t have to look far to find someone’s hot take for next year.
The Money & Markets team has made bold predictions as well. You can read the first in our series from research analyst Matt Clark here.
Before we look ahead, there’s something to remember about 2022 market predictions…
What Wall Street Expects in 2022
A quick scroll through my newsfeed revealed predictions from some of the biggest investment banks around. Headlines like:
- “UBS sees the S&P 500 rising above 5,000 in the first half of 2022 before reversing.”
- “Goldman Sachs cuts U.S. GDP growth forecast for 2022 over Omicron fears.”
- “JPMorgan says 2022 to see full global recovery.”
But one stuck out:
- “Wall Street can’t decide what 2022 will hold.”
Even the largest money managers in the world aren’t certain what the future holds. And if they were, would the bigwigs at JPMorgan shout it from the rooftops for everyone to hear?
I’m not trying to disparage any of these claims. Teams at these investment firms spend weeks creating insightful reports based on mountains of data. Their market predictions hold truth and plenty of investable ideas.
The bottom line is that no one is certain what the future holds.
The COVID-19 pandemic is a perfect example. I don’t recall anyone having “global pandemic that will shut down the world” in their 2020 market outlook reports.
Make the Most of 2022 Predictions
There’s a lot of value in well-thought-out predictions.
They can reveal trends within the market that weren’t on our radars.
If many analysts come to a consensus concerning a sector to watch or a certain expectation for economic growth, we can use that analysis to inform our own investing plan for 2022.
They’re also entertaining to read! It’s fun to see why someone thinks bitcoin will hit $1 million in the next 12 months or why Amazon will become our overlords in 2022.
Even the wildest predictions contain valuable insights. If the bold prediction seems hard to believe, read why that analyst thinks it will happen.
Maybe bitcoin misses the $1 million mark but hits $200,000 because major retailers allow customers to purchase goods with the cryptocurrency. (This is just an idea.)
That would equate to a 300% increase in bitcoin’s price. I don’t think anyone would scoff at a 300% gain.
Just remember: No one is certain what the future holds.
Our Predictions for 2022
The Money & Markets team is rolling out its own 2022 market predictions throughout December. You can check out Matt’s right here.
I can tell you right now, there’s a good chance we’ll miss on a few calls. But remember, it’s all about why. The reason behind the prediction is where the value lies.
We hope our research shows you why we have such high conviction about certain market moves.
Bonus: Chief investment strategist Adam O’Dell is finalizing his big predictions for next year, but if you want a preview, check out some of his top mega trends of 2022 here.
To get ahead of the game and see how you can start investing in some of these mega trends, click here to join us in Green Zone Fortunes today! Adam believes a technology he calls “Imperium” will be a top investment throughout this decade. And this revolutionary tech is disrupting industries across the board. Click here to learn more.
My 2022 Prediction
Keep in mind that I’m not a stock analyst like Adam, Charles or Matt.
But I’ll throw my idea out.
If I’m way off, feel free to reach out to Feedback@MoneyandMarkets.com.
But here goes…
I think 2022 will be the year we return to normal.
We had a couple of false starts this year thanks to the COVID-19 delta and omicron variants. But the response has been impressive. The infrastructure is there now, so we won’t be caught flat-footed again.
To put numbers on this prediction, I think the bull market will continue. The S&P 500 will hit 5,200 by the end of 2022. That’s an 11% gain.
Let us know if you have a prediction you’d like to share! Email Feedback@MoneyandMarkets.com, and maybe we’ll feature your hot take as we continue our 2022 market prediction series.
To a safe and profitable 2022!
More Money & Markets Predictions for 2022
The Money & Markets team has more bold predictions and insights into what’s on the horizon in 2022:
- Beyond 2022: Invest in 5 Mega Trends for Multiyear Profits
- 2022 Market Prediction: Inflation’s Next Big Move
- 2022 Market Prediction: It’s Growth vs. Value All Over Again
- My Bold Cannabis Prediction for 2022
Best investing,
Chad Stone
Managing Editor, Money & Markets