© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Adapting to a Volatile Trading Market in 2022
Posted 15th June 2022

Adapting to a Volatile Trading Market in 2022

Volatility is a common part of the trading landscape for experienced investors, but it’s still something many struggle with when it comes to securing and managing their portfolio. The transition from 2021 and 2022 has been a complex one for new investors and veterans alike.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Adapting to a Volatile Trading Market in 2022
Trading Market

Volatility is a common part of the trading landscape for experienced investors, but it’s still something many struggle with when it comes to securing and managing their portfolio. The transition from 2021 and 2022 has been a complex one for new investors and veterans alike. While countless younger generations have abandoned their portfolios completely after the simplicity of the 2021 Bull market disappeared, others have been left scrambling for a solution. According to a recent report from David Rosenberg, the S&P could easily crash a further 17% after dipping into a Bear position this May. Analysts believe we’re on the road to a prolonged Bear market with a similar potential economic impact of the financial crisis in 2008.

 

The Volatility of a Recessionary Bear Market

Rosenberg says the market today is following a very similar pattern to the recession-led landscape of 2008. By May of that year, the significance of the problems in a sub-prime lending environment had grown increasingly obvious. The S&P 500 had also narrowly averted dropping into a Bear market, after dropping by around 17% at one point from the previous record high in the October of 2007. Though the market did recover temporarily, it quickly transitioned into a free-fall state, dropping by almost 40% by the end of the year.

Rosenberg, with 30 years of experience in the industry, has warned investors repeatedly to prepare for the impact of a Bear market, citing the low dividend yield of the S&P 500 as a reason he’s expecting an increased downtown in the months ahead. For those getting involved with the market for the first time following the Bull market of 2021, as well as investors with a long-standing stake in their portfolio, there are still options available. However, the focus right now must be on building the correct strategy. Right now, the yield on the 10-year treasury is competing better for long-term investor cash at 2.8% than the S&P 500. In fact, the gap between the environments hasn’t been this wide since May 2018. Additionally, while stocks have surged in recent years, thanks to the rising number of new investors in the retail market, they’ve also dropped sharply in 2022.

 

The Bull Market Wasn’t as Stable as it Seemed

According to Rosenberg, as well as many other experts, the crash of equities towards a Bear market indicates the last two years highlights how fragile the apparent Bull market actually was. Economists have also suggested the pandemic stimulus packages created by the Federal Reserve contributed to relatively unrealistic stock market valuations. This meant the decision to start increasing interest rates quickly led to a crash.

The growing money supply in the trading landscape has suddenly collapsed in the last year, and there’s barely any opportunity left in money velocity. Radical stimulus options have suddenly shifted to a trend of massive restraint among investors. While the S&P rallied slightly in late May, the futures market suggested the index would quickly erase any potential gains. With market volatility leaving everyone in a state of panic, now is the time for many traders to reconsider their options when it comes to securities and money building opportunities. More investors are rapidly beginning to turn to derivative products like CFDs (contract for differences) to capitalize on the potential opportunities in the landscape.

 

Why CFDs are Beneficial for Volatile Markets

CFDs represent a valuable investment opportunity for trading during volatile times. Increasingly offered by more accessible environments, these tools are pegged to assets like forex, indexes, shares, and commodities. Instead of purchasing and owning underlying assets, users can trade on opening and closing values. With CFDs, it’s possible to take advantage of both falling and rising market prices, rather than just waiting for prices to rise. The opportunity to take advantages of fluctuations by shorting the market, allows for more wealth to be developed through the differences in prices.

Users can also get involved with hedging strategies, off-setting trades with opposite positions to help minimize unwanted losses. Plus, CFDs can be traded using leverage, allowing for boosted market exposure and better volumes with small initial capital expenses. While there are risks with any kind of trading, the CFD environment gives us more freedom to experiment with different positions and strategies for making money, diversifying portfolios and potentially reducing loss. The key to success, of course, is getting a comprehensive view of the market, and making intelligent decisions based on the data available. Now could be the perfect time for many investors to begin transforming their strategy, and paving the way for long-term durability.

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
Most Dedicated Audio Technology CEO 2023 (Barcelona): Mercè Delgado
Innovation
10/07/2023Most Dedicated Audio Technology CEO 2023 (Barcelona): Mercè Delgado

In recent years, the technological industry has seen notable changes when it comes to women’s representation and opportunities. While women continue to be underrepresented in certain leadership and technical roles, there is no denying the growing recognition

Read Full PostRead - Eye Icon
42% of iPhone 6 Owners Have Tried Apple Pay According to Auriemma Consulting Group Survey
Innovation
12/03/201542% of iPhone 6 Owners Have Tried Apple Pay According to Auriemma Consulting Group Survey

The move to mobile payments in the US has finally begun.

Read Full PostRead - Eye Icon
Anne Boden is Ready to Shake Up Retail Banking in the UK
Finance
14/04/2015Anne Boden is Ready to Shake Up Retail Banking in the UK

Having worked in the banking world since the 1980s, Anne Boden has seen a lot of changes - but also a lot that has stayed the same.

Read Full PostRead - Eye Icon
10 Cryptocurrencies with The Biggest Growth Potential to Buy Right Now
News
06/10/202210 Cryptocurrencies with The Biggest Growth Potential to Buy Right Now

When you're just starting in the world of cryptocurrency, the dozens of different cryptocurrencies, from Bitcoin and Ethereum to Dogecoin and Tether, might be intimidating. To help you gain your bearings, these are the top ten cryptocurrencies with the biggest

Read Full PostRead - Eye Icon
AI’s Place in the Boardroom: Creating An Effective AI Framework for Staff
Innovation
04/09/2023AI’s Place in the Boardroom: Creating An Effective AI Framework for Staff

The rise of artificial intelligence (AI) has become a hot topic in the world of corporate governance. Traditionally strategic decision-making was the domain of human decision-makers, but with the integration of AI technologies, we’re now starting to see gove

Read Full PostRead - Eye Icon
Reasons for LTD Claim Denials for Covid-19 Long Haulers
Legal
27/09/2021Reasons for LTD Claim Denials for Covid-19 Long Haulers

Covid-19 rapidly spread across the world and became a global pandemic. Hundreds of millions of people became infected, with millions being forced to take a leave of absence from their jobs due to symptoms.

Read Full PostRead - Eye Icon
Budget 2015: Pennies Welcome – Pounds Preferred
Finance
19/03/2015Budget 2015: Pennies Welcome – Pounds Preferred

David McCorquodale, KPMG head of retail, comments on the impact of today's budget announcements on the UK High Street.

Read Full PostRead - Eye Icon
The Impact of Courier Services on E-commerce Businesses
News
03/07/2023The Impact of Courier Services on E-commerce Businesses

In this digital era we’re all living in, e-commerce has truly shaken up the way businesses function, offering ease and accessibility to folks all around the globe. The success of any e-commerce venture largely depends on a trusty and proficient courier s

Read Full PostRead - Eye Icon
8 Modern Business Trends and Opportunities to Capitalise On
Innovation
31/03/20208 Modern Business Trends and Opportunities to Capitalise On

Coronavirus has currently put many businesses on hold so far in 2020, however looking towards the rest of the decade, there are several trends that are taking hold, changing the landscape that entrepreneurs rely on. For those who stay current, these developmen



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow