The growth potential of the WIG20 index at 7% in 2022
18:43
The growth potential for WIG20 companies is approx. 7% in 2022, Ipopema Securities analysts estimate.
"We believe that 2021 has deserved its place in history as one of the most volatile and speculative years in the recent history of the global stock market, alongside the pandemic rollercoaster in 2020 and the slowdown in 1999 or 2009. This does not mean that 2022 will bring panic or crash, but normalization of some kind. The main reason behind the recent turbulence in the market was the emergence of a new, highly contagious strain of the coronavirus and the Fed's simultaneous shift to a more hawkish policy to contain the inflation threat. The signaled acceleration of the Fed's reduction of bond purchases and the related earlier interest rate hikes in 2022 would not plunge the markets into anxiety or panic, it would be an ideal scenario for central banks," the report reads.
However – according to analysts – "dangers are lurking". As long as inflation remains uncomfortably high, central banks may be less inclined to pursue dovish monetary policy, even at the risk of markets suffering broader, more severe falls. Investors' willingness to buy, while still strong, will also be tested by a marked slowdown in China's GDP growth, and Russian threats to Ukraine may end in a destabilizing round of sanctions and counter-sanctions, Ipopema believes.
(ISBnews)
