Legendary emerging markets guru Mark Mobius has recently shared his forecast for 2022. Mr. Mobius outlined the possible risks that could await market participants. He is also sure that "markets will be very different in 2022."
Among the main threats, he highlighted hacker attacks, the fall of the crypto market, and geopolitical risks. He believes that our life becomes more dependent on technology every year. If hackers break into certain systems, the consequences may be very unpleasant. It may invoke serious damage to the global information systems. Mr. Mobius assumes that the second biggest risk could be a decline in the crypto market. He warned that many investors might lose their money due to the high volatility. In early November, the total capitalization of the crypto market exceeded $3 trillion, while in mid-December it dropped to $2.16 trillion. "It’s not an investment, it’s a religion. People should not look at these cryptocurrencies as a means to invest. It’s a means to speculate and have fun. But then you got to go back to stocks at the end of the day," he pinpointed.
The third risk is associated with geopolitics, especially the tensions between the US and China. If the conflict escalates once again, it will adversely affect markets. Although its blow will be temporary. The trade war between the US and China began in 2018 when President Donald Trump was at the helm of power. US Trade Representative Catherine Tai said that President Joe Biden would continue to fight against China's unfair trade practices that hinder the prosperity of US businesses and workers. "For too long, China's lack of adherence to global trading norms has undercut the prosperity of Americans and others around the world," Tai said.
