Top Investment Trends: What to Expect in 2022

The evolving COVID-19 pandemic has somehow dampened the optimism that ushered in 2021 and nations' expectations of a successful economic recovery.

But one year later, the unabated spread of the Omicron variant may lead to prospects of new restrictions and lockdowns. And more people might find themselves stuck in financial problems once again.

Nonetheless, the US entered its 2022 economic recovery on a high note, with rewarding returns on the stock market and consumer spending on the rise. And in 2022, there is still plenty of money you can make. This article will discuss the few investing trends to watch out for throughout 2022.

The Persisted Uncertainty of the Job Market

The US Bureau of Labor published statistics that suggested that the overall nonfarm payroll employment in November rose by 210,000 while the unemployment rate dropped to 4.2% from 0.4%. These numbers might be encouraging, but they don't paint the whole picture for us from a stock market research firm standpoint. The United States of America has not recovered the 22 million jobs that disappeared into thin air during the pandemic-fuelled recession. This problem needs to be addressed before the labor market can normalize things.

Supply Chain Solutions

The supply chain has experienced many issues since the start of the pandemic. The UK and the US have reported that their ports are full of shipping containers waiting to be unloaded or refilled with the merchandise. And this phenomenon has considerable implications for all market types. So, it might not be easy to implement a complete recovery until all store shelves are packed to capacity.

Computer Chip Shortage

Another issue with this year's stocks is the ongoing computer chip shortage. And worse still, the chip shortage isn't affecting the tech market alone because all durable consumer products feature computer chips. A late 2020 fire at a Chinese plant compounded these shortages that the pandemic had initially caused. Consequently, manufacturers worldwide started experiencing shortages of ADC and DAC chips for audio equipment. Although tech companies are beginning to access more computer chips in 2022, it might take a whole year to break even.

ESG Investing

Since the COVID-19 emergence, the pandemic has proved how it can catalyze Environmental, Social, and Governance (ESG) investing. Sustainable funds had already cleared up a record of $508 billion in the initial ¾ of 2021 in investments throughout the world. At the end of September 2021, their assets under management rose to approximately $3.9tn. ESG has become a principal theme in the world of investing as the pandemic's consequence and the international response to it.

Today, for a growing number of businesses and investors, ESG issues have become critical economic determinants with a noteworthy bearing on profitability. Everything is now under the ESG umbrella, from clean energy and global warming to gender and racial equality. And in 2022, every indication shows that this trend is poised to surge persistently.

NFTs

2022 is the year worldwide investors saw the explosion of Non-Fungible Tokens (NFTs) into the mainstream consciousness. Today, there is no avoiding the NFT chatter from financial media to social media platforms. NFTs are cryptocurrency tokens (non-fungible), meaning unlike fungible assets like Bitcoins and fiat currency, the NFT tokens are not interchangeable.

NFTs generated a worldwide sensation earlier in the year after artist Beeple traded his artwork for an attractive $69 million. Right now, NFTs are growing into a multibillion-dollar industry, attracting memorabilia seekers and art enthusiasts to invest millions of dollars in exceptional creations. As an investment asset, NFTs allure is now so irresistible to the extent of drawing even sports stars, corporations, and music celebrities into the game as sellers and buyers of digital tokens.

NFTs' popularity is projected to continue unabated throughout 2022 and the years to come.

Final Word

Although 2021 saw the emergence of multiple new investment trends, some like NFTs might specifically remain in our heads for generating a global sensation in 2022. So, if you are an investor, watching out for the above trends would significantly benefit you.