My Highest-Conviction Market Prediction for 2022 | The Motley Fool

The year is almost over, and that means Wall Street strategists are revealing their top stock market predictions for the new year.

It wasn’t unusual to see the S&P 500 move more than 5% in a single day around that time, uncharacteristic for the large-cap index that most of the time doesn’t go up or down more than 1% in a trading day.

The VIX, which is the Chicago Board Options Exchange Volatility Index, is an indicator of expected volatility for the U.S.

Topping the list is inflation, caused by an unexpected surge in consumer demand as the economy started opening back up earlier this year.

Although the central bank gave the market clarity on its intentions in 2022 , I have zero doubt that they will change their plan at some point.

And even if you are ready for it, dealing with your emotions during times of huge price swings is incredibly challenging.

While the iPhone maker still operates in the tech sector, its unquestionable importance in consumers’ daily lives, plus its remarkable ability to generate massive amounts of free cash flow, make it a relatively safe bet.

Volatility, on the other hand, is just the price we must pay in order to have a chance at beating the market.

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