Could FOREX.com's Metals Prove A Worthy Substitute To Equities In 2022?

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Could a growth slump be on its way to the equities market?

With the consumer price index rising by roughly 7% in 2021 – the highest reading since 1982 – and the Federal Reserve’s decision to tighten credit faster and execute three interest rate hikes in 2022, many professionals believe that the time has come for equities to slow down.

Shon Anderson, president and chief wealth strategist for Anderson Financial Strategies, for example, has hinted that 2022 may be a lackluster year in the stock market and portfolios in general, while other analyst groups like Schaeffer Investment Research have drawn similar conclusions. 

While no one – not even professionals – has a crystal ball, it seems safe to assume that monumental moves exhibited by growth stocks like Roblox Corp. RBLX and Rivian Automotive Inc. RIVN may not be as frequent in 2022. With growth stocks possibly diminishing and professionals hinting at a difficult terrain, investors are likely considering other avenues for opportunities.  

FOREX.com believes that its metal offerings may provide just what they’re looking for. 

Metals with FOREX.com  

FOREX.com – the U.S.’s leading broker for forex trading according to the monthly Retail Forex Obligations Reports published by the Commodities Futures Trading Commission – grants investors several avenues to engage with metals. The broker provides access to unleveraged spot gold and spot silver against the US Dollar.  

The former commodity may prove an interesting avenue in 2022 with several reports hinting at the possibility for bullish sentiment for gold in 2022. For one, with the Federal Reserve’s upcoming rate hikes, the finding that gold has averaged a 200% appreciation within the last 5 rate-hike cycles has placed it on some investors’ radars. 

Rising demand for gold jewelry and scarcity in gold reserves serve as other potential fundamental catalysts, and an examination of the VanEck Junior Gold Miners ETF GDXJ provides further ammunition for optimistic bulls. The chart showcases a textbook cup and handle pattern that’s indicative of a possible continuation to the upside. 

FOREX.com offers Spot Gold and Spot Silver against the U.S. dollar, providing plenty of opportunities for the American investing audience to engage in predictions for 2022. As the SPDR S&P 500 SPY and Invesco QQQ Trust Series 1 QQQ experience their much-anticipated corrections, some may say that the time is ripe for alternative investments. Spot Gold and Silvers contracts are not subject to regulation under the U.S Commodity Exchange Act.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.