Ending A Cycle, Starting A New One

The last trading day in the crazy year of 2021 has arrived. Some people say that 2021 is the year of recovery, whether it is recovering after the pandemic from the medical perspective, or in the stock market.


All U.S indices not only recovered from the drops that occurred in February and March, they even surged to new all-time highs. 

S&P 500 climbed from 2,200 to 4,810, recording an astonishing increase of 118%, whereby the top performers in the index were Moderna Inc (MRNA) with a YTD return of 252.74% in the first position, followed by Devon Energy Corp. (DVN) with a YTD return of 177.8%, and finally Nvidia Corp (NVDA) with 155.66%.


NASDAQ surged from 6,625 to 16,675, increasing approximately 151%, with Apple Inc. (AAPL) reaching its all-time high of USD 182.13, recovering more than 250% from its drop at the beginning of the pandemic.

We also had some really interesting activities in most industries, witnessing magnificent increases in investments and exposure. The best performers were Software (Net Income in 2021 $81.3Bio), Computer Peripherals (NI $96.4Bio), Drugs and Pharmaceuticals (NI $95.8Bio), Oil and Gas Industry (NI $31.3Bio), and finally Household Products (NI $40.6Bio).


However, the year 2021 wasn’t only about flowers and blossoms. We also witnessed illogical inflation rates and debt increases on a global scale.

The U.S inflation rate spiked breaching the healthy 2% level, accelerating to 6.8% in November of 2021. This increase forced the federal reserve to take strict monetary and fiscal measures in order to avoid further increases.

The world also suffered, and will still suffer from the supply chain, whereby ocean and air freight are experiencing massive delays. This in return negatively affected the production of billions of products and forced producers to increase their prices due to lack of supply.

Despite all of those issues, starving investors pushed the global markets to new highs with an indescribable risk appetite.


This reaction gives us a glimpse of what we might see in the year 2022. We are looking at resilient investors, preying on dips, and benefiting from hikes.


So, will we witness a jump from the year of recovery to the year of growth?


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The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice.  Any view expressed does not constitute a personal recommendation or solicitation to buy or sell.  The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI.  Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.