By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The Herald ghanaThe Herald ghana
  • Home
  • General
  • Entertainment
  • Politics
  • Editorial
  • Business
  • Sports
  • Feature
  • Health
  • World
Reading: Inflation, China, Omicron: Top Three Investment Headwinds In 2022
Share
Aa
The Herald ghanaThe Herald ghana
Aa
  • Home
  • General
  • Entertainment
  • Politics
  • Editorial
  • Business
  • Sports
  • Feature
  • Health
  • World
Search
  • Home
  • General
  • Entertainment
  • Politics
  • Editorial
  • Business
  • Sports
  • Feature
  • Health
  • World
Follow US
  • Advertise
Copyright © 2022 The Herald Ghana. All Rights Reserved
Business

Inflation, China, Omicron: Top Three Investment Headwinds In 2022

J N
Published December 22, 2021
Share
4 Min Read
SHARE

Investors need to brace themselves for three major headwinds in 2022 and a failure to take action could result in a ‘hammer blow’ to their finances, warns the CEO of a global financial advisory giant.

This is the stark warning from Nigel Green of deVere Group, which has $12bn under advisement, as investors look ahead to another year that is likely to be “shaped by volatility.”

He says: “Headwinds – the factors that weigh down growth and positive returns – are likely to outnumber the tailwinds in 2022 as the world continues to readjust to the post-pandemic era.

“Currently, there are three main issues that investors should be monitoring carefully and, depending on their portfolios, taking steps from which to mitigate the risks.

“First, is inflation. It’s a risk that is a major concern for most investors around the world. Why? Because it kills returns by eroding the buying power. 

More Read

NLA Boss in China to forge digital lottery partnerships

US-China clash could send gold to $5,000
China is putting Trump on notice: Ready for full-on trade war
China’s new economic plan will reignite investor trust amid waning US confidence

“Of course, the other reason is that higher inflation usually brings higher interest rates in response from central banks. When rates are hiked, typically consumer and business spending falls, borrowing becomes more expensive, economic activity slows, and financial markets fall.”

Last week, the Bank of England raised UK interest rates for the first time in more than three years in an effort to combat surging inflation.

The move follows the U.S. Federal Reserve a day before setting the stage for earlier, faster interest rate hikes as inflation soars. The U.S. central bank is now forecasting three rate increases next year.

Mr Green continues: “Second, is China. The country’s economic growth is uncertain. Much of the recent slowdown has been fuelled by the wider impact of the collapse of huge property developers such as Evergrande.

“There are now serious worries that this could initiate a worrying credit crunch that would be disastrous for the world’s second-largest economy, which would have global repercussions.

“Plus, the regulatory attack on tutoring, and other sectors such as gaming and ride-sharing, appears to highlight the Chinese government’s new thinking and its increasing push for control of private enterprise. 

“Given the state-sponsored attack on private capital, investors will be required to take a leap of faith regarding China’s political strategies.”

And third is, of course, Covid. “Whilst the markets have largely shrugged off the impact of the Omicron variant, there is still no certainty about how it will play out in the longer term. Will it impact economies due to the introduction of new restrictions? Which sectors will be hit the hardest? How will it impact the workforce? How will already shaky supply chains be managed?  These are questions that can directly impact investor returns but to which we still have no answers.

“In addition, all this uncertainty about growth, demand and investment is all kicking off as central banks and governments are withdrawing stimulus.”

Headwinds, says the deVere boss, will surpass tailwinds in 2022, which will be “shaped by volatility as the world readjusts.

“However, it’s essential that investors stay invested. As we know, history has shown us that markets tend to go up over the long term.

“But as the world moves ahead to a post-pandemic era, it’s crucial that investors ensure their portfolios are suitably diversified across asset classes, sectors, currencies, and regions, so as to make the most of the considerable opportunities that will inevitably present themselves. A good fund manager will be an invaluable resource.”

He concludes: “Investor portfolios must reflect the future, not the past.”

You Might Also Like

NLA Boss in China to forge digital lottery partnerships

US-China clash could send gold to $5,000

China is putting Trump on notice: Ready for full-on trade war

China’s new economic plan will reignite investor trust amid waning US confidence

J N December 22, 2021
Share this Article
Facebook Twitter Whatsapp Whatsapp Copy Link
What do you think?
Love0
Sad0
Cry0
Happy0
Surprise0
Angry0
Wink0
Previous Article Emirates Sweeps Five Awards In 2021
Next Article I’m The Dancehall King Who Gave Vybz Kartel His First ‘Billboard’ Song – Beenie Man
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe
- Advertisement -
Ad imageAd image

Latest News

60 NPP MPs back Bawumia as Ken Agyapong woos MMDCEs with lavish food
Major 1 Major Politics June 20, 2025
EC goes adamant over Ablekuma North election concerns
Major 1 Major Politics June 20, 2025
Galamsey coalition warns gov’t against betraying public trust
Business Major 1 June 20, 2025
GIPC CEO holds strategic dialogue to shape investment future
Business Major 1 June 20, 2025
CurrencyRate

You Might also Like

BusinessMajor 1

NLA Boss in China to forge digital lottery partnerships

May 14, 2025
BusinessMajor 2

US-China clash could send gold to $5,000

April 25, 2025
BusinessMajor 2

China is putting Trump on notice: Ready for full-on trade war

April 9, 2025
BusinessMajor 3

China’s new economic plan will reignite investor trust amid waning US confidence

March 19, 2025
Show More

Copyright © 2022-2025 The Herald Ghana. All Rights Reserved

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?