5 predictions for the stock market in 2022

Stocks don’t go up forever:
There is likely to be at least one 20% market correction in 2022. Chat up any market pro and they will acknowledge being worried how a stock market trading at record multiples and driven by a handful of tech stocks (Apple, etc.) will react to an increase in interest rates. Those increases are coming, people. Now this doesn’t mean you go to cash in January. What it does mean, however, is to begin doing homework on potential defensive investments in your portfolio.

Housing will stay hot:
Home prices will probably go up another 10% (at least) in 2022 as buyers try to outrun higher interest rates at a time of incredibly low housing inventory. It’s no small wonder that shares of Sherwin Williams and Home Depot enter 2022 trading near record highs. Or, 3G Capital (who usually invests in food companies — see Restaurant Brands and Kraft Heinz) just shelled out a 70% premium to blinds maker Hunter Douglas.

It’s time for change:
New management at Kohl’s has to happen as the company’s stock has been a poor performer under current management… ditto the fundamentals of the business. The company came under activist attacks (one is ongoing) in 2021... and could see more in 2022 if there aren’t changes at the top (bringing in people that embrace new ideas).

Time for another look:
Coinbase and Robinhood shares finished 2021 well off their all-time highs, more so the latter. At some point in 2022 both of these stocks will fall back into favor with investors in spite of regulatory concerns (among other issues). Both are tremendous platforms with strong brand recognition — it’s hard to see those things not being better appreciated by the market this year.

Well, duh:
File this prediction under the Captain Obvious column. Microsoft and Apple will end the year above $3 trillion market caps, powered by strong performances through the first half of the year.

Part of the content is taken from Yahoo.