Market Distortions Are The Key Chance To Profit In 2022

As 2021 comes to an end, it’s increasingly difficult to recall the world as it was before COVID-19 joined the party.

Trying to predict what 2022 will look like is anybody’s guess.

Travel has become as hassled an administrative process as I remember it from 30 and 40 years ago. Only now rather than collecting physical tickets, connection details, and visa documents in a folder for a trip, you’re confirming you have the proper QR codes and passenger locator forms on your phone.

Show up without all the required virtual red tape, and the airline will turn you away at the gate. I speak from experience.

The key to international travel as we push through yet another wave of infections is flexibility.

A friend in Paris had tickets to return home to South Africa for Christmas until all flights were cancelled. He couldn’t get home even though he is South African.

The pandemic continues to have real-time effects on mobility… and on global property markets, as well.

In some of my favorite markets, inventory is being snatched up quicker than agents can finalize listing agreements. The exploding demand for second homes, the expanding work-from-home movement, and savvy investors swapping stock profits for real assets are all fueling values.

This isn’t one of those times when you have to worry about finding a buyer for a property asset you’d like to cash out of in most of the world.

Stock markets have also benefited from the pandemic and the trillions the U.S. and other governments have given away trying to keep their economies afloat… and their people eating. And the United States isn’t done spending yet with Build Back Better still on the table.

All that cash being pumped into the economy has created higher rates of inflation than the United States has seen in 40 years. The pundits are downplaying the implications, assuring us the situation will be short-lived.

They say 2022 should see lower inflation. We’ll see.

They say a stock market correction is inevitable. We’ll see.

They say the pandemic should fade in 2022. We’ll see.

The only certainty is uncertainty.

What should you do in the face of it all?

Keep working your plan while keeping your eyes open to market anomalies. Many will be created as the world works to rebalance itself in 2022 and, I predict, into 2023.

Panama

Looking more closely into my crystal ball, I see Panama recovering faster than any other country in Latin America. The income from the Canal and the massive copper mine now fully operational in the center of that country will refill its coffers quickly.

Colombia

Inflation rates in Colombia are lower than those in the United States right now. The Colombian peso could recover from current levels as the world begins buying their commodities again… meaning you have a closing window of opportunity to buy on this dramatic currency dip.

Europe

The euro is currently trading at a rate to the U.S. dollar last seen 18 months ago. It’ll probably remain in this range into 2022 then head back up as U.S. inflation outpaces EU inflation…

Creating another window you should pay attention to if you’re in the market for property in Europe.

I’m taking my own advice.

I write from Istria, Croatia, where Kathleen and I are renovating the stone villa we purchased here years ago. It seems the ideal time to leverage this long-standing holding to generate some euro cash.

Lief Simon