© 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
Pandora to Acquire Key Assets from Rdio
Innovation
17/11/2015Pandora to Acquire Key Assets from Rdio

Adding technology, IP and talent to accelerate development of new capabilities.

Read Full PostRead - Eye Icon
The Smart Choice
Innovation
13/02/2017The Smart Choice

Remfry & Son is a well-established law firm which continues law practice first established in 1827 by its founder Mr. Henry Oliver Remfry of England U.K. and carried on under the name of Remfry & Son by Mr. Chughtai Mirza Jamiluddin, Advocate. Professional pra

Read Full PostRead - Eye Icon
AI at Work: It’s Here and It’s Working, Whether You Know It or Not
Innovation
01/11/2023AI at Work: It’s Here and It’s Working, Whether You Know It or Not

Don’t call it a takeover, AI’s been here for years. A new global study from HR, payroll, and workforce management software provider UKG reveals that many people use AI daily both at home and at work, and it’s already making millions of jobs easier — em

Read Full PostRead - Eye Icon
5 Reasons Every Company Must Use Recruitment and Onboarding Software
News
11/04/20235 Reasons Every Company Must Use Recruitment and Onboarding Software

Finding the right person for a job can be time-consuming and expensive. Onboarding them is even more challenging, especially when multiple teams are involved in the hiring process.

Read Full PostRead - Eye Icon
10 Pitch Deck Tips That Will Make Investors Say Yes
News
28/03/202210 Pitch Deck Tips That Will Make Investors Say Yes

When it comes to pitching, there are a few things better than a good slide deck. There's the sense of apparent certainty that just having an easily navigable slideshow in front of you can give you when you're talking to potential investors or customers.

Read Full PostRead - Eye Icon
4 Key Elements of Effective & Engaging Business Blogs
News
26/05/20234 Key Elements of Effective & Engaging Business Blogs

Business blogs are ten a penny, and so it pays to make sure yours is effective not only in its content, but its presentation, so that readers are engaged and your audience grows.

Read Full PostRead - Eye Icon
First Quarter Update – Mark-Inventa Co., Ltd.
Strategy
17/05/2016First Quarter Update – Mark-Inventa Co., Ltd.

Mark-Inventa Co., Ltd. is a professional enterprise for the protection of intellectual property rights.

Read Full PostRead - Eye Icon
Most Innovative Law Firm – Mauritius
Legal
05/05/2016Most Innovative Law Firm – Mauritius

ERRIAH CHAMBERS was set up in response to the demand for Mauritiusbased lawyers with international exposure and specialized expertise in the fields of International tax law, International trusts law, International Business laws, and all aspect of offshore busi

Read Full PostRead - Eye Icon
Email’s ROI increases, despite concerns about testing and GDPR
Finance
08/02/2018Email’s ROI increases, despite concerns about testing and GDPR

Email’s ROI increases, despite concerns about testing and GDPR



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 a number of 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