High tricks to prep your portfolio for 2022

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Investors saw it all in 2021. The next year promises a little more upside potential, according to two top strategists.

“Aside from the latest variant and Covid in general, the underlying economy is pretty strong,” said Stephanie Link, chief investment strategist and portfolio manager at Hightower, during CNBC’s Financial Advisor Summit on Wednesday.

“They have above-trend inflation, not runaway inflation,” she told CNBC’s Bob Pisani. And: “We will repair the supply chain at some point.”

That’s good news for consumers and the economy at large, Link said.

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Although stocks plummeted last week on concerns about a faster-than-expected expansion of the Federal Reserve’s bond-buying program, the unwinding of these contingency measures to “normalize” will lead to a “normalization,” noted Liz Young, director of investment at SoFi.

“People have to see that as a buy signal.”

Link also said that there will be great benefits in future ownership of cyclical stocks, including “energy, commodities and industries with pricing power.”

After last year, “a lot of portfolio managers are overweight technology, although there are opportunities,” she added.

“I like cybersecurity and [artificial intelligence] and [augmented reality] – there is so much to look forward to. “

And “anything to do with health technology,” added Young.

Markets have already bounced back from last week’s sell-off, with technology stocks leading the way. The Nasdaq is up 4% since Monday. The Dow Jones Industrial Average and S&P 500 Index posted their largest two-day gain since November 2020.

Link said it expects earnings to grow 11% to 12% in 2022. Young said she expected growth of up to 15%.

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