Insights

Expert names 10 themes that could impact share investments in 2022

This investing expert has lined up 10 themes that could play out on the market this year…
The post Expert names 10 themes that could impact share investments in 2022 appeared first on The Motley Fool Australia. –

It’s that time of year where analysts and investors ready themselves and their share investments for a fresh 12 months. This involves peering into what could be the underlying thematics during the year.

Though it is impossible to say what will occur in the future with high certainty the mental exercise can be productive. By mapping out a range of different factors we as investors can consider the possible outcomes.

One fund manager has shared his take on the 10 themes that investors should consider in 2022.

10 economic considerations when investing in shares this year

According to Morgan Stanley Investment Management’s chief global strategist Ruchir Sharma, there are 10 economic trends that investors should be mindful of this year. While Sharma doesn’t claim to have a crystal ball, his insights serve as a guide to what could shape markets in 2022.

China and declining birth rates

In his article, Sharma points out that declining birth rates have led to a tapering in global economic growth. Notably, the fund manager expects this ‘baby bust’ to further shrink the world’s labour force — jeopardising the robustness of the working-age population across more countries.

Along a similar vein, the investor suggests China may have reached its peak as an economic growth powerhouse. The reasoning is partly attributed to the baby bust, but also increasing debt levels, and government intervention.

This is reflected in the People’s Republic constituting one-quarter of global gross domestic product (GDP) growth in 2021. For comparison, the country previously accounted for one-third of GDP growth.

Inflation fears, green metals shifting gears

Many people have shown concern for their share investments as higher inflation threatens the economy. However, Sharma does not foresee the kind of double-digit levels of inflation that other market commentators have warned about. Rather, the fund manager expects technological deflationary pressures to persist.

On the other hand, the astute investor expects inflation of a different kind to continue — Greenflation. As we have seen across the ASX in the past year, companies associated with green metals have experienced stellar gains. The fund manager explains the reason behind this, with Sharma stating:

[…] green politics is reducing raw material supplies of all kinds. Investment in mines and oilfields has dropped sharply over the past five years. The result is “greenflation” in commodity prices, which just had their biggest yearly increase since 1973.

Less GameStop mentality, more physical reality

The GameStop Corp (NYSE: GME) fiasco of 2021 portrayed a moment in time when retail investor sentiment was skyrocketing. According to Sharma, millions of people dipped their toes into share investments in 2021 for the first time.

However, as expectations converge with reality, the fund manager anticipates more risk for shares that are more popular with retail investors.

Another area that Sharma believes has been mispriced by investors is the physical economy. While the market is captivated by the upcoming ambitions of the metaverse, this expert investor believes investors have shunned physical investments prematurely.

And the rest

The remaining four trends outlined by Ruchir Sharma include spiraling government debt levels, stubborn productivity, restrictive foreign data controls, and deflation in some ‘bubbly’ asset classes.

For the market to exceed its returns in 2021, the S&P/ASX 200 Index (ASX: XJO) will need to rise more than 13%.

The post Expert names 10 themes that could impact share investments in 2022 appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

These 3 ASX shares hit new 52-week highs today

How interest paying crypto accounts could be a gamechanger

Here are the top 10 ASX shares today

GreenTech Metals (ASX:GRE) share price jumps 50% after IPO

Here’s why the Incannex (ASX:IHL) share price spiked 12% today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!