Despite rising prices, risk elements for the market are increasing. With the right investment, however, investors could also benefit from rising inflation rates or supply shortages. Fears of inflation and supply chain issues are dampening the mood on the market. Here we talk about how investors can react to high inflation rates and rising interest rates, in which sectors the greatest returns await in the coming year.
Do You Keep Up With Growth Or With Value?
For the past ten years or more, growth investors have only smiled kindly at the humble returns from their value peers. Briefly to explain: Growth markets are growth firms, so usually technology companies. Value is about tracking down favorably valued companies that are supposed to start on new shores after their slumber. These risks are usually about improving the option-risk description. By definition, there can only be risks if they for example – a lower return compared to the overall stock – shows up every now and then. However, since value lag behind for years and some innovation values are already very hot, it is time for value again in 2022.
Collision Funds On The Investment Fast Lane
The year 2022 will be the year for sustainable investments. Because the European Union has set itself the goal of creating more liquidity in matters of sustainable investment. The awkward term for this is the disclosure regulation. The first stage was already ignited this year, and the second will follow in summer next year. The first stage of the new procedure has been in force since March. The second stage will follow in summer 2022. Then the fund providers must also provide data on the effect of their investment project in relation to some criterias. Sustainability will therefore move into the focus of investors even more.
Ethereum Is More Exciting Than Bitcoin
Sure, when you think of cryptocurrencies, the first thing that comes to mind is Bitcoin. Meanwhile, another cryptocurrency is rising more and more to the new trend – Ethereum. We find Ethereum very exciting, because unlike Bitcoin, it is not just a currency, the platform allows investors to develop new businesses for the crypto world. These then exist on the Ethereum platform, but use their own currencies. You can see it as a crypto economic structure. So Ethereum may be more exciting than the top cryptocurrencies in the coming year.