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Are We Living in Troubling Times? 

For the last few years, it has been a nightmare to open a newspaper, Local and Global media are painting a very depressing picture of the reality of living in our world today. 

Just imagine if you were born in 1900 like some of our grandparents.  

In this scenario when you reach the impressionable age of 14, World War I begin and ends when you’re 18 with 22 million dead and unbelievable destruction.

Immediately after the war, a global pandemic arrives, the Spanish Flu, killing 50 million people and up to 20% of the cities population. 

Let’s say you survived this and you are still alive and now you are 20 years old.

At 29 years old a global economic crisis arrives that started with the collapse of the New York Stock Exchange, causing inflation, unemployment, and famine.

Now you are 33 years old the Nazis come to power.

You are now 39, World War II begins and ends when you’re 45 years old with 60 million dead. 

6 million Jews die in Europe and the “holocaust” is born.  

Smallpox was an epidemic until you were in your 40s, as it killed 300 million people during your lifetime.

A child born in 1985 thinks his grandparents have no idea how difficult life is, but they have survived several wars and catastrophes.

Today we are living in the reality of a new pandemic. We complain because we need to wear masks. We complain because we need occasionally to stay confined to our homes where we have food, electricity, running water, wifi, and Netflix! 

This was unheard of back then. But humanity survived those circumstances and never lost their joy of living.

A small change in our perspective can generate miracles. We should be thankful that we are alive, well and can look forward to a future of substance where we can enjoy the world we live in and our families. 

This is the time to start planning. To lay down the foundations for a future of security and dignity. We have saved money that has to sustain our hope for long life and we may want to look after our loved ones after we are gone so here are some of the trends for 2022. 

Think back to a year ago. Everybody was ready for a booming economic recovery and an amazing summer in 2021, all made possible by Covid-19 vaccines. We even heard that the end of the pandemic was in sight.

Then the Delta and Omicron variants arrived. 

COVID-19: Stock Market Reactions

In the stock market, however, the party lasted all year long. The total return on the S&P 500 in 2021 was more than 27%—not even dramatic inflation data was able to dampen the party. 

But observers are wondering how much longer the bull market can last—barely interrupted as it was by the shortest bear market ever in early 2020. There are signs that the last call could be around the corner—tempered by other indications that investors still have money to make in 2022.

Here are some thoughts for this year: 

Markets Are Still Being Driven by the Covid-19 Pandemic

Which way will the pandemic winds blow? There’s hope that 2022 is the year when travel, commercial real estate, and traditional retail will make a recovery but some of those boats may already have left the harbor. 

Mother Nature, not humans, not politicians, not health experts, will write to write the end of this story.

Investors should realize that the post-Covid market rally is already here, even if the pandemic isn’t over yet. That’s because stock markets have likely already priced in most or all of the gains that can be expected from a fully reopened economy.

What’s Left for Us Tomorrow? 

If federal reserve rates start to rise this is the reality that should harm the S&P. 

Inflation will probably get worse before it gets better, this will also harm equities but in the long run, it may be an opportunity for a bond recovery. In the short term investments linked to the CPI will be the king. 

About the Author
Dan Dobry was the founder of the Union of Financial Planners in Israel (UFPI), served as the first Chairman and President of UFPI. Dan was the Global Council Representative for Israel for the Global Community (FPSB) from 2012 - 2018 and from January 2019 is a member of the Committee for Standards and Qualifications for the European Union (SQC).
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