“Get ready for a drawdown”: what to expect for the stock market in 2022 COVID-19

covid-19, inflation and central bank responses will remain major uncertainties in 2022. Regulators have outlined a course of action, but the environment is too volatile to rely on announcements.

The data is astounding: Since the start of the pandemic, central banks have injected $32 trillion into markets around the world, which Bank of America calculates is equivalent to buying $800 million worth of assets every hour over the past twenty months. The capitalization of the global stock market soared to $60 trillion.

At the same time, inflation rose, and on December 15, the US Federal Reserve announced plans to complete the purchase of assets in March and three key rate hikes next year in order to bring it under control.

In 2022, several issues will remain particularly relevant for investors.