Today is Monday, January 3, 2022.
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2022 Stock Market Strategy
What worked in the stock market in 2021 may not work in 2022, according to trader and YouTuber Hector Vasquez in a new episode of the Early Bird podcast.
Stock Picking: If you made a nice profit in the stock market last year, then 2022 could be a rude awakening. Vasquez says that valuations will be more important this year than last year.
Antisocial: Social media should not be your financial advisor when it comes to stocks, Vasquez said. It should only be used to get different perspectives.
The Profit: Vasquez says that profitability is key. Many popular stocks have not churned a profit. Just because a stock is trendy doesn't mean that you should invest in it.
Final Thoughts: How does Vasquez research and pick stocks? Find out by listening to the latest episode of the Early Bird podcast.
Notable Earnings Today: N/A.
Notable IPOs Today: Integrated Rail and Resources Acquisition Corp. (NYSE: IRRX), Mount Rainier Acquisition Corp. Common Stock (Nasdaq: RNER), Innovative International Acquisition Corp. Class A Ordinary Shares (Nasdaq: IOAC), VMG Consumer Acquisition Corp. Class A Common Stock (Nasdaq: VMGA), Semper Paratus Acquisition Corporation Class A Ordinary Shares (Nasdaq: LGST).
Notable Equity Crowdfunding Campaigns Ending Today: Baked True North (Honeycomb), MicroSalt (MicroVentures), Toast! Supplements (MicroVentures), FinTron (NetCapital), Inebriated Baker (Honeycomb).
Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET).
ATT, Verizon Turn Down FAA’s 5G Plan
AT&T (NYSE: T) and Verizon (NYSE: VZ) dismissed a federal request on Sunday to delay the launch of their new 5G wireless services, which is scheduled for Wednesday, according to The Wall Street Journal.
Background: Federal transportation officials previously raised concerns to the telecommunications companies that 5G signals could disrupt aircraft radio electronics and cause flights to be delayed. They asked the companies to push back 5G deployment by two weeks.
Quote: “Our two companies are deeply committed to public safety and national security, and fortunately, the question of whether operations can safely coexist with aviation has long been settled.” - AT&T and Verizon executives.
Numbers: Both AT&T and Verizon stocks got hammered in 2021. Investors are hoping for a turnaround year in 2022 with an expanded 5G rollout.
Final Thoughts: Keep an eye on airline stocks on Monday to see if this news might impact them as well.
Cryptocurrency Outlook 2022
After an incredible year when many cryptocurrencies saw their prices increase and adoption of digital currencies became more mainstream, what’s on tap for 2022?
Inflation Hedge: Cryptos, in particular Bitcoin, are increasingly seen as a hedge against inflation. If inflation increases in 2022, Bitcoin’s price could skyrocket. However, if inflation levels off, Bitcoin could suffer.
Etherum Play: It turns out that Ethereum had a better year than Bitcoin in 2021. However, can Etherum sustain this growth against a backdrop that includes higher interest rates in 2022?
On the Spot: It is possible that the U.S. Securities and Exchange Commission (SEC) could finally approve of a Spot Bitcoin ETF this year, which would allow more investors to get into the crypto game.
Final Thoughts: The impact of venture capital in crypto, particularly for altcoins, should not be ignored in 2022.
Trends to Watch
No More: China Evergrande shares halted, set to release 'inside information' (Reuters)
Big Win: Tesla Reports 87% Increase in 2021 Deliveries (The New York Times)
Get Ready: Stocks Face Rockier Path in 2022 as Fed Rate Increases Loom (The Wall Street Journal)
Bitcoin Bull Market: Why Jerome Powell’s Policies Are Bullish For Bitcoin (Bitcoin Magazine)
Work From Home: Goldman Sachs asks U.S. employees to work from home until Jan. 18 (CNBC)
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