Why growth and dividend stocks will be hot topics for 2022, with these super-productive companies

A softer start looms as we move towards the end of what has been a see-saw Christmas trading week so far.

Cracked market Blogger Jani Ziedins said the choppy action can in part be explained by the fact that the big traders, and their steadier hands, bailed out for their vacation vacations, leaving the juniors and the more impulsive to hold on. Add the omicron coronavirus variant to this mixture.

“While it’s easy to get these guys to overreact to every little bump in the road, they have so little money that even when they act like a herd they still can’t lead the market. very far before you run out of things to sell, ”he said. noted.

It has been a hectic year for growth companies at times as investors adjusted to the idea of ​​higher US interest rates, increasing the popularity of the defensive stock camp.

Our call of the day, of Navellier & Associates founder Louis Navellier, says 2022 is shaping up to be an excellent year for growth stocks, as well as dividend paying stocks.

That’s when millions of new investors open brokerage accounts and turn to stocks to hedge against the highest inflation rates seen in 39 years, he told clients in a note. And while sales by company insiders and other billionaires raise fears of a bigger correction, Navellier argued that we saw it via omicron-induced market declines between Thanksgiving week and the 3rd. December.

Navellier now sees much of the risk “rooted out” from the markets and the end of the year is a great time to buy, with most of the year-end tax sales now sold out. As for growth and dividend stocks, he outlined four reasons for optimism:

  1. Even with more difficult year-over-year comparisons, a “narrower market is good news for growth stocks and dividend growth stocks and bad news for the ‘index fund’ crowd, since Growth stocks and dividend growth stocks have traditionally thrived in a shrinkage, plus a selective stock market environment like this.

  2. The Fed is expected to remain “reasonably accommodating”, ending quantitative easing by March, but with rates gradually increasing.

  3. Inflation will eventually come down, but will remain above the Fed’s target until 2022. It is expected to fall below 3% by the end of next year, and stocks will likely celebrate it.

  4. The midterm elections will usher in a divided Senate / House / Government that Wall Street craves.

Navellier said investors can also benefit from “pandemic-accelerated technological change” and higher U.S. productivity, where companies can make more money with fewer workers. He singled out artificial intelligence names like Nvidia NVDA,
+ 0.82%
; cybersecurity – CrowdStrike CRWD,
+1.89%
and Fortinet FTNT,
+ 0.25%
– 5G, with GOOGL Alphabet,
+ 0.34%,
Cadence Design Systems CDNS,
+ 0.49%,
EPAM systems EPAM,
+ 0.39%
and Keysight Technologies KEYS,
+ 0.41%
; electric vehicles – Ford F,
+ 0.55%,
Panasonic 6752,
-0.16%,
VW VOW3,
+ 0.87%
– and the manufacturers of KLA 000270 chips,
+1.07%
and United Microelectronics UMC,
-0.43%.

The buzzing

The Biden administration plans to stock four million COVID-19 therapies by the end of January, including antivirals from Pfizer PFE,
-1.41%
and Merck & Co. MRK,
-0.56%
is expected to be approved perhaps on Wednesday, Bloomberg reported, citing sources. These stocks are on the rise.

South African medical experts say recent drops in COVID-19 cases could mean the wave caused by omicron may have passed. Meanwhile, the chances of catching the virus in the air are two to three times higher, according to Dr. David Powell, medical adviser to the International Air Transport Association, warned in an interview. Israel is about to offer a fourth COVID-19 vaccine dose for those over 60, making it the first country to do so.

Tesla TSLA,
+ 5.76%
CEO Elon Musk said he had met his goal of selling 10% of his stake in the electric car maker, amid complaints about California “over-taxation”. Shares are up nearly 3%. And U.S. transportation authorities are officially reviewing a report that Tesla cars allow drivers to play video games while driving.

In a historic first, 2021 saw a record 1,000 initial public offerings, but poor performance by some start-up companies suggests a less startling year 2022.

US gross domestic product for the third quarter was revised to 2.3% from 2.1%. Elsewhere, data showed that the Conference Board’s consumer confidence survey rose nearly 4 points and existing home sales rose for a third consecutive month.

The steps

DJIA actions,
+ 0.55%

SPX,
+ 0.62%

COMP,
+ 0.85%
are mixed flat after Tuesday’s rebound, which did not see enthusiastic follow-up in Asia NIK,
-0.05%

000300,
-0.55%,
and modest gains in Europe SXXP,
-0.10%.
CL00 oil,
+1.37%

BRN00,
-0.26%
is stable after jumping nearly 4% and ahead of key US supply data. The 10-year Treasury yield TMUBMUSD10Y,
1.495%
is down slightly.

Top tickers

Here are the top tickers on MarketWatch, at 6:00 a.m. EST:

Teleprinter Active

TSLA,
+ 5.76%

You’re here

AMC,
-0.56%

AMC Entertainment

GME,
-1.21%

GameStop

NIO,
+ 2.24%

NIO

DXY,
+ 0.04%

US dollar index

TMUBMUSD10Y,
1.495%

10-year US Treasury bill

NAKD,
-6.24%

Naked

DJIA,
+ 0.55%

Dow Jones Industrial Average

ES00,
+ 0.66%

E-Mini S&P 500 Futures

AAPL,
+ 0.36%

Apple

Random readings

Cutest critter of 2021? This dinosaur embryo.

Hugh Jackman returns to Broadway could cheer us up.

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