Where to Invest in 2022
Kiplinger's Personal Finance|January 2022
Investors will have to curb their enthusiasm as markets get back to normal.
By Anne Kates Smith. Illustration by Delphine Lee
Where to Invest in 2022

The U.S. stock market continues to astound with its resiliency, overcoming obstacle after obstacle like a gold-medal track star clearing hurdles. Pandemic? No longer much of a problem. The highest inflation since the ’90s? Not a deal breaker. Record-high stock prices? We’ll pay up—and buy every dip that comes along, no matter how minuscule.

The S&P 500 index logged 64 new highs in 2021 (as of early November), the second-highest annual total in index history. Since our January 2021 outlook a year ago, the broad market benchmark has returned 35.8%, including dividends. We said at the time to expect low-double-digit returns, but that if we were off, it would be because we were too conservative. At midyear, the upper end of bullish 2021 price targets for the S&P 500 among Wall Street strategists reached the 4600 mark. On November 5 (the date for prices, returns and other data in this article), the index closed at 4698.

Will the juggernaut continue in 2022? Our answer is a qualified yes. It has proved to be a mistake to underestimate corporate America, and the market enjoys some strong fundamental underpinnings. But the old challenges remain, and new ones have surfaced. So, once again, we encourage investors to moderate their expectations. You can only reopen an economy once (fingers crossed), and we are likely at or past peaks for growth rates in the economy and corporate profits. “We head into the new year with a glass-half-full outlook,” says Eric Freedman, chief investment officer at U.S. Bank Wealth Management. “But like most market environments, this one is a mosaic of risks, some forecastable and some not.”

Denne historien er fra January 2022-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra January 2022-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA KIPLINGER'S PERSONAL FINANCESe alt
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 mins  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 mins  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 mins  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 mins  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 mins  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 mins  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 mins  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ mins  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 mins  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 mins  |
December 2024