January 2020 was the cruelest month since the outbreak of the coronavirus pandemic. However, it was volatile this year when S&P 500 rose to an all-time high to only limp down further to 5.3% in February. In addition to the above, the benchmark index dipped by at least 1% on six trading days in the same month, dipping 21 times in 2021 by the same magnitude in the market. In short, the market volatility has come back to the stock market of the USA.
Kavan Choksi – know what to expect from the US stock market as an investor?
Business and finance expert Kavan Choksi states that in January, the stock market in the USA succumbed to a pullback that several traders anticipated would last throughout the second half of 2021. The S&P 500 faced a call correctly and fell to 9.8% from its last all-time high. However, this is different from the previous year, when all three major exchanges in the USA gained 18% at least.
Industry analysts have anticipated that February will remain the same and so it is prudent for potential investors to know what the market for 2022 holds for them.
Stock market trends in 2022- what should the potential investor be ready for?
According to industry experts and analysts, the stock market in 2022 will be spent with anticipation of hikes in rates that began in March. Investors made attempts to earn profits from short-term stocks amid rising inflation and hikes in interest rates. According to him, investors should focus on building their investment portfolios over trying to profit from short-term investments currently revolving around inflation and the hikes in interest rates.
Now is a good time for investors to align their portfolios as per the market changes. He recommends investor’s focus on creating a portfolio that will last in the long term and cater to the unpredictability of the stock market that was seen in the month of January 2021.
Market volatility in the stock market
According to him, the market volatility was inevitable and had to occur; however, it took a long time this year to change at its index levels. Investors should take out the time to revise their trading expectations for earning profits after the S&P 500 rose to almost 27% in 2021.
In addition to the above, a majority of strategists at Wall Street predicted single-digit profits in 2022, and one should expect average returns from shares and more volatility. This implies that traders in the US stock market should expect gains that are more or less close to historical averages in the past of just below 10%, over doubling or even tripling in the last few years.
According to business and finance expert Kavan Choksi, the current investor in the US stock markets should focus on the diversification of stocks from different companies and not focus on single stocks from one organization. New investors should educate themselves about the market or consult experienced traders and financial consultants to guide them with supplies and affordable EFTs to build a profitable portfolio this year.