The Year of the Tiger and the Financial Markets
2021 is done and dusted. Roll on 2022, we say. On that note, 2022 is the Chinese year of the Tiger, so today we’re going to investigate what that might mean for traders like you. After that, we’ll give you an overview of what looks to be a very busy week in the markets. Let’s do this!
Roaring into 2022
(Okay, New Year’s resolution 1 — less cheesy sub-headings. Gotcha.)
In case you didn’t know (or skipped the intro for some reason), 2022 is the Chinese Year of the Tiger. While the new year doesn’t actually start until the 1st of February, we thought it would be good to get a head start.
People born in the year of the Tiger are said to be vigorous and ambitious, daring and courageous, enthusiastic and generous, self-confident with a strong sense of justice.
More specifically, 2022 is the year of the Water Tiger — the last one of these being in 1962. According to the horoscopes, Water Tigers may appear brash on the outside, yet on the inside they may be prone to indecision and restraint. All of these characteristics are perfect ingredients for a cautious and successful trader.
Traditional signals
The year of the tiger has historically been a poor year for the stock markets, with the Dow Jones rising just 1.63% on average during these years.
Compare that to the year of the Rabbit (+20.01%), Dragon (+13.54%); and Pig (+12.95%), and you can see just how poor that return looks.
However, there is some positive news! While the average growth in Tiger Years is a little rubbish, the last few years have shown a buck to the trend, with 6 of the last 10 ending in growth for the Dow Jones.
So, chin up, stock traders. It might not be that bad!
Changing fortunes?
Arguably, the biggest factor we’re all dealing with right now is the continued impact of COVID-19 restrictions . What happens in 2022 will impact every part of the global economy and, well, everything else besides.
With dominant variants, such as Omicron, showing their decline in virulence, some scientists are now claiming that we’re seeing signs that 2022 could be the year that the pandemic fades into an endemic disease. So, things may be looking up.
Without getting ahead of ourselves, the real question would then become — to what extent will our world have changed permanently and to what extent will the “old normal” reassert itself? Will we (markets included) really ‘bounce back’?
That’s certainly what happened 100 years ago following the much more deadly Spanish Flu pandemic. It was immediately followed by the Roaring Twenties, a decade of immense economic prosperity.
Let’s hope our 2022 tiger helps us shake off the bad fortune and fly into another Roaring Twenties!
What do you think?
What are you looking forward to about trading most this year? Will you try trading something new? Let us know at @_Contentworks!
Top trading events this week
There’s a fair bit going on this week, here’s when and where you need to tune in.
Monday
● USD — Markit Manufacturing PMI Final (DEC)
Tuesday
● EUR — German Unemployment Change (DEC); German Unemployment Rate (DEC)
● USD — ISM Manufacturing PMI (DEC)
Wednesday
● AUD — RBA Chart Pack
● USD — FOMC Minutes
Thursday
● EUR — Germany Inflation Rate YoY Preliminary (DEC)
● CAD — Balance of Trade (NOV)
● USD — ISM Non-Manufacturing PMI (DEC)
Friday
● EUR — Core Inflation Rate YoY Flash (DEC)
● CAD — Employment Change (DEC); Unemployment Rate (DEC)
● USD — Non Farm Payrolls (DEC); Unemployment Rate (DEC)
Here at Contentworks we closely follow market movements and prep content that we think your traders would love to read. Let’s get you started right here.
From all of us at Contentworks, Happy New Year!
The Contentworks team
