Dear Readers,
First and foremost, I would like to wish everybody "Happy New Year" and I hope Year 2022 is a blessed year which will bring abundance in new opportunities and new hope for everybody.
I am sorry that i have not been writing as frequently as i could due to my busy schedule. Nevertheless I would like to take this opportunity to update everybody on what are the dangers and opportunities in Year 2022 that you can take and ride your way throughout with ease.
The DANGER which i am referring to is how Federal Reserve will tackle the inflation issue where most asset prices, prices of products, services, raw materials and commodities rise across the board, the frequency of imminent interest rate hike, the severity of the increment in interest rate will cause the Financial Markets to collapse. Should Federal Reserve proceed with a gradual and slower pace of frequency and severity of the increment in interest rate hike, the Bull market will last longer than unexpected.
The OPPORTUNITY which i am referring to is the THEME
1) Price of Commodities will break all time high or set new high which have inverse relationship with USD, increased demand for raw materials and minerals for specific industry. (Electric Vehicles, Smart Apple Car, Renewable Energy industry, Defence), Commodities producers will channel more resources into investment to boost supplies.
2) USD devaluation will hasten inflation to worsen in US which will be a key test for Federal Reserve to take action on their monetary policy and its direction.
3) Logistic Supply Chain like Airfreight and Seafreight will receive a booster post covid 19 era where economies reopen without restrictions, highly transmission of omicron covid 19 variant to temporary shut down of ports and cause supplies chain disruptions, increased demand for commodities, raw materials and minerals, RCEP effective in year 2022 will be a key driver to Asia growth with China leading the pack, Price of toll at Suez Canal increase by 6% starting in February 2022.
https://gcaptain.com/suez-canal-toll-increase-to-boost-revenue-by-400-million-chairman-says/#:~:text=The%20Suez%20Canal%20Authority%20announced,cruise%20ships%20and%20LNG%20carriers.
4) Utilities like Fossil Fuel power plant generating electricity or alternative Renewable energy like (Solar, Wind and Turbine) and Nuclear Energy power plant will be boosted and forecast with energy supplies disruption, shortage of fossil fuels where Indonesia curtail Thermal coal exports ban limiting supplies to deal with potential electricity supplies disruption, climate change (Snowstorm, heatwave, storms) and natural Disasters disrupting energy supplies will result in increased demand for fossil and other alternatives to generate electricity to keep our electronic devices, factories and business operating, There are increased demand for electricity from Electric Vehicles, Drones, Bitcoin Mining consume massive electricity to mine bitcoin, Server operating 24 hours 7 days where Airconditioning is needed to cool, Electric Scooter and Bike, smart phones, apple watch, ipads, tablets and home appliances. Efficiency in renewable energys supplies in quesion where the given production capacities for electric energy have a theoretical value, which could be obtainable under ideal conditions. They are measuring the generatable amount of energy that would be reached under permanent and full use of all capacities of all power plants. In practise this isn't possible because Solar collectors are less efficient under clouds, also Wind and Water Turbine power plants are not always operating under full load. All these values are only useful in relation to other energy sources or countries. Use of Nuclear energy complicates environmental concerns and Health Hazards with disposing nuclear reactor waste and countries are exploring reintroducing Nuclear energy to solve their energy supplies disruption.
https://www.worlddata.info/america/usa/energy-consumption.php
https://www.reuters.com/business/indonesia-minister-says-emergency-over-coal-supply-crunch-cnbc-indonesia-2022-01-07/
5) Forex pair USDCNH is forecast strengthening to 6 level. strengthing CNH means inflation level is mitigated in China will spur more consumptions by the chinese.
I wish my readers all the best in their investing journey.
Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.
