Once again, we are wrapping up one year and heading into another. As we close the book on 2021, we have our eyes on the new year and what to focus on for 2022. With the continued effect of COVID-19 on both the economy and the way we live our daily lives, let’s take a look at what trends can shape investing in 2022.
Crude oil prices, measured by West Texas Intermediate (WTI), rose by about 79% from the start of 2021 to early November, from about $47 to about $84. By Dec. 15, 2021, the price had decreased to about $70, bringing the year-to-date rise to 49%.
Prices of gold peaked in January 2021 at about $1,950 per troy ounce, but have traded around $1,800 since the middle of the year. The inflation expectations of 2022 will likely drive fluctuations in gold prices.
Sales of new homes have been booming. In October 2021, the median price of new homes reached a new record high of $407,700, up 17.5% from the same month in 2020. Pantheon Macroeconomics chief economist Ian Shepherdson noted, “A combination of lower rates, easier lending standards and, perhaps, a renewed bout of COVID fear in cities, has driven the turnaround, which appears to be continuing in October, though perhaps at a slowing pace.”
New car production has been constrained by semiconductor chip supply bottlenecks, which has made used cars a hot market. Car prices are expected to remain high for the foreseeable future for both new and used vehicles.
There will be many moving pieces to watch in the economy in the coming year. If you’re looking for guidance on building an investment portfolio to helps you maximize your financial goals, at Hiley Hunt Wealth Management we help educate and guide you through investing to build a portfolio that works for you. To set up an introductory meeting today, give us a call.