During yesterday's session on Wall Street, U.S. indexes seemed to continue their good run, with the S&P 500 and Dow Jones closing at record levels. The S&P 500 hit a record high for the 70th time this year, its best performance since 1995.
So far in 2021. The S&P 500 is up 27.6 percent, the Nasdaq is up 22.3 percent and the Dow Jones is up 19.2 percent, near the 4800, 16500 and 36500 point levels, respectively. However, investors seem to be a little less optimistic about the outcome in 2022, according to a new CNBC Delivering Alpha survey of investors. About 400 people involved in the capital markets and Wall Street investments took part in the survey.
More than half of respondents said inflation is their major concern in 2022, 30 percent of respondents said a rate hike by the Federal Reserve at the wrong time is their biggest worry, while 17 percent said the economic impact of a lingering pandemic is their No. 1 concern.
For months, investors have watched various inflation figures reach their highest levels in decades. The consumer price index, which measures the cost of a broad basket of goods and services, rose at an annualized rate of 6.8 percent in November, the fastest pace since June 1982.
The Fed has signaled it will take aggressive action in response to rising inflation, including an accelerated reduction in monthly bond purchases. Fed officials also forecast as many as three interest rate hikes next year.
The S&P 500 Index is up more than 27 percent this year, hitting a record high, while the market has climbed a wall of concerns ranging from rising inflation to an ongoing pandemic to a withdrawal of monetary stimulus. Investors believe earnings will be significantly lower in 2022, according to a CNBC survey.
More than 50% of those surveyed expect the S&P 500 will rise less than 10 percent. Nearly 18 percent believe the market will reach another double-digit gain, while 10 percent see the possibility of a sideways trend.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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