Welcome!
2022 trading environment will be great for traders.
Volatility equals opportunity if you know how to use it.
The volatility already started in December but it will continue into 2022. The main problem for investors is uncertainty. What can not be argued is that we are in uncertain territory. Because the next 6 months’ picture is unclear, the investors choose a risk-off strategy.
The period in which we are now is the most uncertain that I can remember.
We have an economic mess after the bureaucrats intervene to “fix the covid problem“. At this moment they are closer than ever to recognizing that they do not know what they are doing. They are contradicting themselves in a matter of weeks.
This economic mess has a big political impact worldwide. Conflicts are starting to be very common. An environment of economic instability invites political conflict. Each country sees its own interests and it will try to take advantage of this situation. Some countries will gain more power than others. The environment itself is welcoming reckless behavior. The bureaucratic mess will get uglier.
On one side, we will see lotteries and spiritualists on TV for the low-income population, on the other side investments in business will slow down. Speculation for low-income / risk-off for high-income people. Interesting dynamic.
But we need to remember the economy is not the stock market. Keep the flexibility, probably we will have some wild swings.
From chaos, order
Companies that are profitable and have a very good position in their industry will have a clear advantage. Raising money by the unprofitable business will slow down.
To be honest, I am very curious about the crypto market adaptation, especially Defi. When you have a messed-up financial system, the Defi space can be very attractive for many people. In my opinion, the Defi space inside the crypto market is more like a defensive play for crypto investors.
Keep your calm and try to look at the situation clearly, unemotionally.
At some point, the image will be much clearer, take action when necessary.
All of this being said, be ready to change your mind if the data and the situation are changing.
From this chaos, we will have adaptation and then order.
Be well.