The economic recovery is likely to continue this year but there can be plenty of volatility due to these three reasons.
Diminishing central bank support
However, Gulf Brokers has handpicked some of the best assets class investments that are worthy to be watched this year.
The US dollar is a financial instrument that is expected to gain value during periods of uncertainty. 2021 was the best year for the greenback since 2015. The dollar index, which measures the greenback against six major rivals ended last year with a gain of more than 6%. Recently, the dollar Index slightly retreats from last year highs after the latest data showed U.S. consumer inflation fell within estimates. The king dollar is expected to regain the upside momentum in the coming days after the consolidation.
Precious metals, gold and silver are generally seen as safe investments and resilient against inflation. Silver represents the second most popular precious metal, which is perceived as a cheaper alternative to gold. Silver price dropped by more than 13% in 2021 weighed down by the strong US dollar and rising bond yields. But we believe the metal is still a bargain buy for this year around $22 compared to gold following the correction in 2021.
Global stocks wrapped up 2021 at record highs. Last year was a phenomenal year for the EV sector. The electric car industry continued to grow in the coming days, 2022 seems a great year as many developments have been made and promised in this year.
10 important EV stocks the investors should watch this year
Lucid Motors (LCID)
General Motors (GM)
LI AUTO (LI)
Bitcoin can be one of the alternatives investors can look out for during the stock market’s downtime. Bitcoin jumped 66% last year and hit a record high. Technically the overall momentum remained bearish for the crypto pair after the last few months downside move. In the long term, there are chances the Bitcoin may eventually rise back if it continues to find buyers on dips. While investors should, nevertheless, keep in mind that the price of bitcoin is very volatile and investing in them is often compared to gambling.
Oil prices rallied more than 50% last year and it should of course continue the longer-term momentum, which is most certainly to the upside. Meanwhile, the oil traders should keep an eye on the rising fears over climbing pandemic case counts and the prevalence of the omicron variant of COVID-19. The volatility is still strong and in the long term, we expect the crude oil prices likely to pull back before the bounce due to the ongoing Omicron uncertainty.
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