My 2022 Investment Plan (Stocks & Crypto)

In this video, I talk about how I see 2022 playing out across stocks and crypto markets and how I am positioning my stock and crypto portfolio to reflect those thoughts headed into the new year.

With 2021 coming to a close i wanted to do a recap on my investing profile as well as talk about 2022 and where i think the markets are headed and how i’m positioning myself for next year to give you guys an idea of where i’m personally invested in these markets i broke down my net worth by asset class most of my worth is between stocks and crypto which makes sense

Because that’s what i mostly talk about on this channel you’ll see that i don’t have any physical real estate the only real estate exposure i have is through things like vmq and that’s part of the stock portfolio but overall this is how my wealth is broken down you may be asking why do i hate real estate so much i don’t hate it i just never got involved with it i

Have a better understanding with stocks and i’ve always loved stocks over real estate because of how passive stocks are with stocks i don’t have anyone calling me to complain about living conditions or i don’t have random repairs that i either have to fix or hire someone to fix at 3 a.m in the morning i know the benefits of real estate and it’s definitely something

I’ll get involved in later on in life i kind of made a decision a big decision in 2021 to quit my full-time position as a senior financial analyst at a fortune 200 and if i stayed there for a little longer while working on mainstreetwolf on the side i probably would have gotten into real estate a little sooner because of the dependability of my income there i made

The decision to go as a full-time creator building my financial platform the education website maintreewolf.com so i went all into that so i’m using my cash position more as a bigger buffer instead of using that to put a down payment on real estate right now as i become a little bit more stable in the future then i’ll start to look at real estate again with that

Said let’s talk about stocks and where i think this market will go in 2022. in 2021 we saw a resurgence in real estate financials and energy as the sector leaders for this year which makes sense because in 2020 these are the sectors that performed poorly we were coming out of the pandemic and these are the sectors that were really getting beaten down once things

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Calmed down a little bit people realized that there was going to be demand for energy financials they weren’t going to go bankrupt because of all the loans they gave out they all bounced back and bounced back hard going into 2022 i think financials still have room to do well versus the general market because of the environment we’re in with the fed where they’re

Raising rates and tapering which should allow banks and financial stacks to make more money going forward to get an idea of what other sectors will do well in 2022 we can look at something like the business cycle and see what part of the cycle we’re in if we look at the research coming out of fidelity on where they think the business cycle is for the us it’s past

The midpoint and headed towards the late part of the cycle meaning that growth is starting to slow down the credit is starting to tighten and the earnings aren’t growing as exponentially taking that into account going into a late cycle means that consumer staples energy healthcare materials and utilities may be the companies that do well and if you look at tech

Companies consumer discretionary more stuff related to growth may underperform i tend to agree with those assumptions because 2020 as well as 2021 where years of explosive growth for earnings every single year can’t be explosive growth there’s some point where the earning starts to slow down and i think we’re gonna start to see that because the comps are becoming

Harder and harder to beat which i wrote about in my free weekly newsletter hunting for alpha that i do like sectors like healthcare utilities and consumer staples going into 2022. does this mean i’m selling all of my growth stocks and going all in on utility companies no i don’t like to over rotate and chop myself up by trying to perform too much sector rotation

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But it is definitely something i look at when i’m buying stuff now going into next year for instance with my public portfolio that’s currently sitting at 60 863 the past couple weeks i’ve been more focused on buying companies like johnson johnson facebook ally these are kinds of companies that i believe have good cash flow are still growing and will do well in

This type of market environment i will continue to nibble onto growth stocks i believe are discounted and not trading at crazy high multiples things like digital turbine bumble disney these are some of the stocks that i’m looking to add even though they are growth basically i’m trying to avoid buying hyper growth stocks that are trading at extremely high multiples

Leaning my 2022 purchases more towards stalwarts versus fast growers overall i think the stock market will go up next year i just don’t think we’ll be seeing those 20 plus gains that we’re used to in 2020 as well as 20 21 switching gears a little bit let’s talk a little bit more about the crypto markets 2021 was a great year for crypto investors this is actually

The second bull run that i’ve been part of the first one i saw in 2017 and i saw the euphoria in 2017 and did take some profits along the way up and we went into a bear market for years and boom we popped back up again in 2020 going in 2021 again in 2021 my strategy was take profits after an insane year of gains and put a little bit into stable coins that way if

We do go into a bear market i have some capital to redeploy back into the markets and increase my potential stake in crypto meaning my exposure to crypto is more like 14 15 versus this 20 because around five to six percent is in stable coins 2022 i’m fully prepared for a bear market because i think we’re running into something similar we saw in 2017 where we go

Through these speculative cycles which drives awareness to the space but also drives to situations where people think it’s just going to last forever and as soon as the hype dies down a little bit and the people that don’t fully understand the technology lose interest we may get a correction in price it doesn’t mean that i’m bearish on crypto long term i just think

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In these boom and bust cycles it’s smart to take profits when people are euphoric and during bear markets continue to just dollar cost average into solid projects they have utility and aren’t going to go to zero i personally have a lot of my crypto investments in layer one solutions because i think those have the most development and can withstand bear markets the

Best when i talked about the stable coins i also have that earning interest so i’m making money on my holdings i also lend out my cryptocurrency that i hold so in a way i’m collecting dividends on the cryptocurrency that is in my portfolio i’m not really distributing too much extra new money into the crypto portfolios i like to throw extra money at crypto when no

One cares about it and people are on it of course i don’t have a crystal ball and i can’t say with a 100 guarantee that we’re going into a bear market if that was the case i would sell everything double my stack when we crash but that may not actually happen we can’t always look at the past to determine what’s going to happen in the future and that’s why i always

Have crypto exposure in my portfolio it’s never going to go away 100 i just tend to rebalance my risk that’s pretty much been my crypto strategy forever and honestly it’s done pretty well if it’s not broken don’t fix it overall i think the stock market is going into the late cycle of the business cycle and when it comes to cryptocurrency i’m being a little cautious

Preparing myself mentally as well as positioning the portfolio for bear market definitely comment down below on your thoughts on the markets going in 2022 for both stocks and crypto would love to hear other people’s opinion if you guys did enjoy the video make sure to hit that like button as well as consider subscribing to main street before we talk stocks crypto

Anything to do with money thanks guys for watching and have a great day you

Transcribed from video
My 2022 Investment Plan (Stocks & Crypto) By Main Street Wolf