Top tips to prepare your portfolio for 2022

Investors have seen it all in 2021. Next year promises to be a little more likely, according to two top strategists.

Stephanie Link, investment strategist and portfolio manager at Hightower, said during the CNBC Financial Advisors Summit on Wednesday: “Aside from the latest variation and Covid in general, the underlying economy Pretty strong version.

“You have above-trend inflation, not runaway inflation,” she told CNBC’s Bob Pisani. And, “eventually we’ll fix the supply chain.”

That’s good news for consumers and the economy at large, Link said.

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Although stocks fell last week on concerns about a faster-than-expected decline in the Federal Reserve’s bond-buying program, those emergency stimulus efforts Liz Young, SoFi’s head of investment strategy, notes.

“People need to see that as a buy signal.”

Going forward, owning cyclical stocks will create major advantages, Link also said, including “energy, materials, and pricing power sectors.”

After last year, “a lot of portfolio managers are overweight in the tech sector, although there are opportunities there,” she added.

“I like cybersecurity and [artificial intelligence] and [augmented reality] – there’s so much to be excited about. “

And, “anything related to healthcare technology,” Young added.

Market bounced back from last week’s sell-off, with technology stocks leading the way. Nasdaq is up 4% since Monday. NS Dow Jones Industrial Average and S&P 500 Index recorded the biggest increase in two days since November 2020.

Link said she expects earnings growth of 11% to 12% in 2022. Young said she predicts growth as high as 15%.

Subscribe to CNBC on YouTube. Top tips to prepare your portfolio for 2022

Emma James

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