Everything You Need To Know About How We’ll Succeed In 2022.

As 2021 draws to a close, it's time to look ahead to 2022. What does the future hold for us -- and more importantly, for stocks?

Today, I want to share some predictions for the coming year...and strategies for investors to succeed.

2021 will be different from previous years. We've come a long way from lockdown to reopening the economy. We went from fearing an epidemic to having a lot of vaccines. We are used to working in a virtual environment.

This is also reflected in the stock market.

We are now starting to notice a sudden shift in attitude. Popular "stay-at-home" stocks that make life easier and allow us to function have fallen out of favor.

During the pandemic, videoconferencing, electronic signature software, and cloud-based businesses soared to new heights... They're now crashing to the ground.

Cloud Computing Isn't Going Away Anytime Soon

Many businesses claim that their customers' buying habits are returning to normal. This suggests they believe the peak of the pandemic is over and things are returning to normal.

This may be true in the short term, but I believe the future has changed permanently. The frequency of signing contracts with a pen will become less and less frequent. Instead, more and more people will use electronic signatures. Going forward, video will always be an option for meetings.

We'll be exercising in the cloud, watching TV in the cloud, and doing pretty much everything else in the cloud.

Therefore, I believe cloud storage and specialty companies will continue to dominate in the coming year.

Investing in the cloud-focused Global X Cloud Computing ETF (CLOU), which pulled back sharply in early December, is an easy way to play:

A market pullback like this would provide a great opportunity to buy at bargain prices.

Cloud computing won't be the only trend in 2022...

COVID-19 Will be a Minor Stumbling Block

As of this writing, we are facing some market headwinds...

The first is Omicron (and any future variants of COVID-19). People are eager to get out and about... However, the new variant has awakened some people's fears.

However, in my opinion, these panics are going to be small.

There were some encouraging findings, such as the fact that most people with symptoms of the new variant were not vaccinated, while her six-year-old patient was "much better" within days.

Symptoms appear to be mild so far. Fatigue, fever, and headache were the most common symptoms reported by patients. Many patients return to normal within two or three days.

We haven't heard of any serious health concerns related to Omicron... Only a government that responds quickly will cause a global panic.

Therefore, I don't think Omicron (or any similar variant) poses a new threat to our health or the stock market in 2022.

But it's not just virus fears that people are worried about now...

There's Still Time To Invest In Stocks

Investors worry about inflation. The Fed is considering reducing purchases and easing quantitative easing. This has heightened concerns about rising interest rates.

Still, 10-year Treasury yields suggest now is a good time to buy stocks. It is currently trading around 1.36% as of this writing.

The top tax rate on S&P 500 dividends is 23.8%, while the top tax rate on Treasury bond dividends is 40.8%.

This means that owning stocks instead of bonds gives investors a 24% return on investment:

Stocks were also sold off heavily in early December.

According to my data, this is the most popular since the pandemic collapsed in March 2020.

The downtrend for the iShares Russell 2000 ETF (IWM) was much sharper than the downtrend for the SPDR S&P 500 ETF Trust (SPY):

My Big Money Index moves in sync with the market (BMI). BMI (light blue line) measures institutional inflows and outflows from the stock market.

BMI dropped rapidly. In fact, BMI could easily become oversold if we don't see more buy signals to break the trend.

If we enter a new year oversold, two things can happen:

We will be very distressed and hopeless.

This will be a historic and special period for investing in stocks. This will be the time to put on your helmet and head to the market to buy great stocks that are underperforming.

And, in general, we have to ask ourselves: Are we on the brink of another global lockdown and economic freeze?

Personally, I don't believe it. The Omicron variant of COVID-19 doesn't appear to be any more dangerous than the original strain. Viruses generally become more contagious when they mutate, but are less dangerous.

What Will Happen to Outliers in 2022?

This brings me to my final prediction: Outliers will continue to outperform the rest of the market.

Since the 1920s, outlier stocks have accounted for 100% of market returns above U.S. Treasuries and 4% of all stocks. I have devoted my life to finding, analyzing and investing in unusual stocks.

They can be very volatile, sometimes even more volatile than the market, but nothing compares to the situation with outlier stocks over time.

I'm talking about the Googles, Amazons, Apples and Microsofts of the world. They, too, used to be small start-ups trying to find their way.

Additionally, I believe the 2022 dividend will present some compelling outlier opportunities.

And, in 2022, I believe dividend growth and high-quality, profitable small-cap growth stocks will provide some compelling outlier opportunities...this is my vision for 2022.

I look forward to seeing what happens next year, especially with outlier stocks.

Everyone Have a Wonderful New Year!