We are nearly halfway into the year, which has already been eventful. Despite the market cooling off due to a number of factors, including rising inflation, there are still some trends to watch in 2022.
Environmental, Social, and Governance (ESG)
Most of us have become more aware of our environmental and social responsibilities in every aspect of our lives, and this has also impacted the investment and trading world. ESG means not just taking into consideration the usual financial considerations when investing but also taking into account environmental, social, and governance responsibilities and has become a big trend in 2022.
For those who are environmentally minded, evaluation of a company is based on the carbon footprint, whether they use recycling or green products, and if they use renewable energy, just to name a few considerations. Other factors include social and governance, and it takes a bit of research and analysis to understand how to evaluate ESG and how it works thoroughly.
This year the trend for ESG investing has seen a shift, making it as competitive as more traditional strategies. For example, Tesla has a strong ESG performance, scoring well on both social and environmental issues. CFD trading is a popular method as it gives access to Tesla stock as well as other popular brands while using smaller margin amounts. When researching what companies hold a good ESG rating, look at independent sources for accurate information.
Commodities outperformed the stock market last year and are also a popular trend in 2022, with predictions that high levels will last well into 2024. Commodities like oil, wheat, lumber, etc., have all seen significant price increases, with several global factors influencing these hikes. Although energy prices have already risen significantly in 2022, they are set to increase even more in the second half of the year.
CFD trading makes commodities more accessible, as world events influence demand and supply. Traders speculate on the price changes of commodities, including metals like copper, energies, or agriculture. Many opt for a diversified portfolio in times of inflation that includes commodities and traditional stock. It is easy to see why commodities continue to be a big trend as they are central to everyday life and are easier to understand.
2021 was a significant year for cryptocurrencies with massive price swings. Interest in the crypto market has never been higher, including increased attention from governmental bodies looking to establish regulations.
One of the most significant breakthroughs was the first Bitcoin (futures contracts) ETF on the stock exchange, making it a more mainstream and conventional option. Although crypto is a great way to diversify a portfolio further, it is still highly volatile, so generally, people do not invest what they are not willing to lose.
However, more and more mainstream organizations and companies, like PayPal, allow for the use of crypto on their platforms. The continued potential for growth in crypto is massive. Other related trends to watch are the Metaverse, AI, and blockchain technology.