Digitization Taking the Spotlight

$Nasdaq Composite Index(.IXIC.US)$
$Invesco QQQ Trust(QQQ.US)$
The touch of technology in business and health communications will be felt in 2022 too as uncertainties prevail. Moreover, with the global economy striving to bounce back from the virus-led slump, corporate and social efforts to save the cost structure will be a priority. Travels will likely be less in the post-COVID world and e-payments will gain precedence.

Biotechnology is another great area with genomics grabbing limelight. These two segments — tech and biotech — should continue to march ahead in 2022 with or without virus scare. Since the Nasdaq-100 has 70% focus on technology and about 5% exposure to biotech, 2022 has high chances of being a rewarding year for the index.

Plus, the Nasdaq-100 has about 16% focus on the Consumer Discretionary sector, which is in fine fettle currently thanks to a solid jobs market and higher pent-up demand. This cyclical sector also tends to perform well in a rising-rate environment. 

In fact, the Nasdaq’s relatively restrained gains in 2021 may open up some great opportunities in early 2022. Against this backdrop, investors can very well play the Nasdaq ETFs right now.