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Friday, December 31, 2021
How to Ride Santa’s Sleigh of Momentum Into 2022
Santa Claus has come to town, and if the past 92 years of positive stock market returns during this time are any indication, he’s here for at least a few more trading days. This is a bit of good news, especially in the midst of the current COVID-19 global pandemic.
This ‘Santa Claus Rally’ also provides a good opportunity for us to review our investing success of 2021, as well as plan ahead for continued success in 2022. Here are three tips/strategies to help you plan ahead and best position yourself for investment success in the coming year:
Go global. Global assets, especially equities (stocks) and fixed income (bonds) often present opportunities to find incredible value as well as manage portfolio risk. One area that many are bullish about for 2022 is the United Kingdom. Juliet Schooling Latter (Head of Research at Chelsea Financial Services) notes that investors are undervaluing the UK markets. She especially likes the funds Liontrust UK Smaller Companies and Marlborough UK Micro Cap Growth. By investing in such undervalued markets, you can mean huge gains for your portfolio in the coming year.
Get gold. The fallout from COVID-19 has contributed significantly to inflation and other market concerns, and figures to continue to do so in 2022. Historically, gold has been a counter to inflation and it also runs counter to the stock markets. John Tobey (Forbes) says that history indicates that now is a good time to buy gold, in part due to continued inflationary concerns. Remember, however, that most investment experts recommend having no more than 5-10% of your portfolio’s value in gold.
Get out in front. The biggest opportunities for growth are also ones that present considerable risk for investors, including being among the first in a sometimes unpopular trend. Consider those investors who bought American Airlines (AAL) in March 2020 and subsequently sold in March 2021, nearly tripling their investment. Michael Marcus (TipRanks) sees similar potential for significant growth in 2022 in the cybersecurity sector. He views Allot Ltd (ALLT), Airgain (AIRG), and Markforged Holding (MKFG) as opportunities for significant profit.
Enjoy these tips and Santa’s ride into 2022, and have a happy and healthy New Year.
To partner with us, or to reach out with comments, questions, or concerns, please email us at info@taryagfinancial.com or click here. (Image above courtesy of Bryan R. Smith / Getty Images)
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