The first half of 2022 has seen fears of recession and a global economic slowdown. Market charts have displayed one red line after another. The anticipated economic recovery in the wake of Covid-19-related restrictions is yet to be realized. The impact of the Russia-Ukraine war looms with uncertainty among many countries. What can investors anticipate in the remaining months of 2022?

Uncertainty affects supply chains and demand trends in equal measure. Before trends can recover from political events or unforeseen factors, the turbulence makes spending irrational as people tend toward survival. Reduced spending causes ripple effects in terms of economic growth, revealing intricate dependencies among people in different economies. As many people speak of tightening their proverbial belts to keep up with the slow economic growth, it’s critical for investors to understand and appreciate this overall sentiment. Access to alternative income and redistribution of demand could take another year before showing any signs of recovery, and this is the first aspect that’s critical to appreciate.

Inflation and interest rates have affected investor outlook in various markets. Interest rates affect access to credit, while inflation rates affect the cost of living. 2022 has seen inflation rates rise to levels not seen in the last two to four decades, causing investor unrest globally. Given that quantitative tightening is a relatively novel phenomenon for most economies, it remains too early to assess the impact it will cause. As governments put measures in place to protect their economies and currencies from the adverse effects of rising inflation, investors need to have that certain factors will be beyond their control. Economies take time to recover, which is more likely in 2024 than in 2022.

Considering tech stocks, for instance, many have been on a downward trend this year. Nasdaq declined more than 23%, indicating clear bearish sentiment. Slower hiring growth and layoffs prevailed in the first half of 2022. This is unlikely to recover in 2022, as companies anticipate preparation for difficult times. With a keen eye for trends, it’s likely to spot opportunities in the midst of a recession. Industries such as food, healthcare, education, and energy will still have spending based on necessity. Considering resilient markets with a long-term view will be essential to investors in the coming months.

The investment environment globally will have turbulent winds in the coming months, but it calls for keen strategies in investing. A classic rule of thumb is to manage your expectations. You still need to do your own research before investing and set aside what you’re comfortable losing should the market go contrary to your predicted expectations. Diversify your investments and maintain a long-term outlook to avoid short-term fear in decision-making. Manage your personal debt exposure to reduce your vulnerability to interest rate hikes. Plan for contingencies by setting in place an emergency fund. If you can weather the present investment storm, it will be easier to realize future gains.