Markets to Watch in 2022: The Best Markets for Trading

Follow the stock market in 2022

By the end of winter 2020, global equity markets had experienced a historic dip, such as the CAC 40 which has lost almost 35% of its value in fifteen days, or even raw materials in free fall, with the price of oil falling from $ 65 a barrel to less than $ 30 following the coronavirus.

Equity markets began to rise around the 4th quarter of 2020. This trend, which intensified in October and November as the possibility of a covid-19 vaccine became clearer, was confirmed in 2021 with the spread. of vaccines around the world.

At the end of 2021 we see that the GDP of several developed countries has returned to pre-crown levels, even if there is a risk that inflation weighs on the various financial markets.

Against this backdrop, European equities are trading at an all-time low for 10 years versus US stocks. Morgan Stanley bank strategists predict an even more favorable year for equities in 2022, with stock market indices rising roughly 8% over the next twelve months.

According to them, it would be better to avoid investing in companies that can see their margin reduced by inflation, and to favor stocks that can benefit from inflation or that can resist inflation thanks to their ” pricing power “.

This bank favors sectors such as automotive, banking, energy, construction, insurance, media, mining, healthcare and transportation. The banking sector could also benefit from rising interest rates and asset quality. Several French stocks such as Alstom, EDF, Eiffage and Sanofi are highlighted.

Here are some areas you can invest in stocks in 2022 to diversify your portfolio with IG:

The information technology sector

Actions related to teleworking, big data and the IoT, 5G, artificial intelligence and the cloud have taken advantage of confinement and “lockdown” to explode. Analysts are betting on a strengthening of this trend and suggest investing in silicon chip makers. A highly specialized computing chip, indispensable in the artificial intelligence sector.

Some of the more notable titles that can perform in this industry include companies like Microsoft, Apple, Alphabet (Google), and Facebook.

The healthcare and pharmaceutical sector

Far from being a blessing for companies in this industry, covid-19 has been quite merciless to some of them, who have been brutally confronted with the pandemic.

Despite this, the healthcare and pharmaceutical sectors remain a good investment choice due to long-term demographic trends, advances in the development and administration of the anti-covid vaccine and above all due to the increasing life expectancy around the world, which will benefit pharmaceutical companies and medical device manufacturers.

Investors therefore believe that many healthcare stocks such as Sanofi, Gilead Sciences, Pfizer and Johnson & Johnson could be among the best stocks to trade in 2022.

Find out how to trade medtech shares with IG

Renewable energies

Alternative and renewable energies are becoming more and more popular and this trend is expected to continue in 2022. The use of wind and solar energy, which represent only 8% of the electricity used in the world, is expected to increase exponentially in the coming years.

Therefore, the activities related to the design and marketing of lithium electric batteriesElectric vehicles and hydrogen vehicles are expected to generate excitement among many investors.

Basic consumption and online sales on the stock exchange

The consumer staples sector remains a solid investment choice despite the lockdown and health crisis, as households continue to consume, even at times like this.

The online sales sector, which has seen an explosion of shopping during the first half of 2020, has seen this trend confirmed with containment measures and telecommuting in 2021. These companies, including the most famous and the big winner is Amazon , will expand further in 2022. Carrefour, Casino, Wal-mart and Costco Wholesale are other examples of the biggest names in this sector.

The communication sector on the stock exchange

Communications services and companies operating in this sector should be among the best stocks to trade according to some analysts.

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