INDIANAPOLIS, Feb. 3, 2022 /PRNewswire/ -- In a recent article for Medical Economics, Dave Gilreath, CIO of Sheaff Brock, reviewed current trends likely to affect sectors, companies, and funds in an effort to guide investors at the start of 2022.
Interest rate increases projected by the Fed has prompted news coverage predicting a market decline. Yet, history shows that, of the eight Fed rate-hike cycles since 1983, the initial Fed rate hike in any series resulted, on average, in a 6.6% S&P 500 increase during the six-month periods after those increases.
Those projected interest rate increases, combined with the Omicron variant, continue to cause market volatility. While many investors equate volatility with risk, volatility is actually an asset class with potential to create gains. Harnessing volatility through options trading can be a good alternative to bonds, which are currently paying negative yields after inflation.
The $1.1 billion infrastructure act passed by Congress in November of 2021 offers industrial stocks growth over the next several years. Many of the companies comprising market industrials also have unusually high-tech attributes—robotics, autonomous vehicles—which may make them attractive for investing.
The ongoing inflation that's been projected to get worse in 2022 may create unexpected investment opportunities, such as real estate investment trusts (REITs) which are known for being resilient to inflation.
About Sheaff Brock:
Sheaff Brock is an SEC-registered, fee-only independent investment firm striving to enhance portfolios of growth- and income-oriented investors, managing $1.4 billion in assets nationwide as of 12/31/2021. Sheaff Brock principal David Gilreath contributes investment commentary to CNBC.com, Medical Economics, Seeking Alpha, and Financial Advisor magazine. Visit Sheaff Brock YouTube for information.
Disclaimer:
Sheaff Brock Investment Advisors, LLC ("SBIA") is an SEC-registered investment advisor founded in 2001. Clients or prospective clients are directed to SBIA's Form ADV Part 2A prior to deciding to participate in any portfolio or making any investment decision. The views and opinions in the preceding commentary are subject to change without notice and are as of the date of the report. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, and is not intended to predict or depict performance of any investment.
SOURCE Sheaff Brock Investment Advisors
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