Why the stock market is fine in 2022
The S&P 500 is only up 30% since pre-COVID early 2020. This is basically the normal returns in a 2 year period. If you take out the FANNG stocks, the S&P 500 is only up 0%. Adjusted for inflation, the stock market really hasn't done that well. There's still a ton of cash sitting on the sidelines ready to buy dips. I'd say 2022 is fine. We might get a 10-15% correction, but by the end of 2022, we should still be up 10%. It's 2023 that is more worrisome. The Fed will likely taper and hike rates too much, we get a yield curve inversion, and the economy can't tolerate it. A 10 year treasury yield of just 2% will be enough to give a lot of pain. Even a recession is possible. But we are talking about 2022. Good places to invest is Facebook, Amazon, and Google. BABA has been oversold and ready to rally again. I also like small caps and biotech (which already corrected and very cheap). My picks are APPS (Digital Turbine) and $SAVA. VIX derivatives are a good hedge i