Things You Should Know When Creating a Trading Portfolio with PrimeXBT

Investing is a critical matter, especially now with the COVID-19 issue. Markets are reeling from the effects of Covid, albeit some having a better year than 2020 when the pandemic was like a script from a horror movie. Investors are keenly watching, but which assets will shape the next few years?

Crude oil prices have shaped the latter part of 2021, previous lows of up to $47 a barrel slowly turned into highs of $84—a situation not witnessed in a while. Noteworthy, the jump in the price of crude oil highlighted the dire need for pandemic preparedness in the future, as when countries started coming out of lockdowns, the prices immediately started shooting up. While everything in the last two years has had Covid as partial blame, the action by President Biden to limit oil exploration and political climates will affect PrimeXBT’s cryptocurrency margin trading and other forms of trading in 2022.

Will Inflation Impact Investments?

Admittedly, inflation influences the prices of commodities. The situation on hand regarding inflation is unprecedented, early indications still show inflation rates might reach new highs in 2022. These dire predictions create a lot of uncertainty that will surely discourage holding some assets. Gold, as per the trading information in PrimeXBT, touched a high of about $1950 per ounce—this was in January 2021. However, in the better part of 2021, it averaged about $1800. While these prices seem somewhat consistent, those of 2022 will be a different story according to predictions, with high volatility the most likely scenario when holding the asset.

2021 Market Highlights

The ongoing semiconductor shortage has hit automakers hard; though the situation has helped improve the used car industry. Rental cars have also seen a sharp rise in demand, with prices rising high for both the used and new cars. Rental cars’ performances in different markets are a powerful indicator of the service industry, which is also reeling from the pandemic. Like the inflation situation driving up consumer prices, the rental car sector and other service-based industries will see prices stay up well into 2022. However, the persistence will cut across many other industries as well.
Real estate is a notable point in gauging the market viability for investment and will see prices surge. The median house prices as of October stand at about $407,600, a new high of 17.5 percent compared to the figures seen in October 2020. Though Covid stands to be the major factor driving prices in various industries, renewed fears of lockdowns are driving people to invest in new homes out of town, debilitating the growth of real estate in big cities.

Influence of Federal Laws on Market Performance

If anything is to go by, actions by the Federal Reserve have a potent influence on the economy, more so at such a time when Covid is causing a lot of havoc worldwide. Actions by The Securities and Exchange Commission (SEC) is also looking to have a say on market performances soon. The SEC is looking to have tougher rules on the payment for order flow (PFOF), a situation that will dampen the already battered trading activities. A ban will affect the businesses of brokerage firms; candidates such as Robinhood will feel the effect probably in the first quarter of 2022. SEC is looking to seal the doors on purchasing new bonds—a bid to help revitalize the battered economy. The limits by the SEC will probably come in March 2022, meaning a tank in trading activities.

However, in the wake of all the negative actions taken by the SEC, the commission is looking for consolidation with indications on near-zero interest rates in the entirety of 2022. Other muted situations to watch out for include renewed vigor by governments in understanding crypto trends and the many announcements for government-backed digital assets that might come into play soon.

All these actions will have a say in commodity prices, and platforms such as PrimeXBT will reveal the impacts on their asset price terminals.

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