From his point of view, there are currently predominant economic topics that will accompany us in 2022: inflation, China and blockchain.
“Inflation came to stay,” writes Wölfl in a report, and there are various reasons for this. He names supply chain bottlenecks, legal regulations, interest rate policy and the fight against climate change as the driving factors behind inflation. It could go on for decades and above the European Central Bank (ECB) and Federal Reserve (FED) target of two percent.
In order not to make losses, Wölfl recommends that people invest their money. Since real estate prices have already risen sharply and the demand for raw materials is unchecked, gold and precious metals as well as mining and mining companies are good investment options.
Wölfl expects that China will continue on the path to becoming the number one economic world power. Even though 2021 was a stressful year for investors in Chinese stocks – China’s situation was anything but stable due to the Chinese government’s political intervention in its own economy or the conflict with the US – he is convinced of his prediction: the massive sell-off this year offer a historic opportunity. Tech giants are needed, but also other global champions. Even if these do not correspond to communist ideology, China will support them.
After weighing all aspects, Chinese stocks should recover. The RedCaps could benefit from a comeback with investments in Alibaba, Tencent, baidu, Fosun International Group and Sinopharm.
Blockchain is also in the overtaking lane and nothing is expected to change in 2022. It is expected with a further increase in token prices and a flood of new financial products for digital assets.
The crypto market is gradually gaining trust and seriousness and its position in the investment sector is further solidifying. In addition, Ether could replace Bitcoin as a forerunner. License income in the DeFi area – decentralized financial markets – has the greatest potential for growth, according to iMaps.