The markets' biggest concerns for 2022

According to Markets Live Global's survey of nearly 700 respondents, the biggest risks in the market for 2022 are inflation, coronavirus and geopolitical tensions. More than 30 percent of the respondents answered "inflation" to the question "What are the biggest concerns about the financial market in 2022?” Respondents said that the central banks' lagging behind the curve or rapid tightening due to high inflation poses risks. Over 25 percent of the respondents said they were worried about the coronavirus, while about half were worried about the new variant. Respondents are concerned about new restrictions by governments or policy adjustments by central banks.

War risk and the FED

About 23 percent of the survey respondents pointed to geopolitical tensions, and 16 percent to the risk of war or conflict. In this sense, it was seen that the biggest source of these concerns was the tension between China-Taiwan and Russia-Ukraine. The fourth biggest tail risk is the FED. 13 percent see the US Federal Reserve's rapid rate hike and 10 percent see policy mistakes as tail risks. The 5 percent highlighted risks such as global central banks' falling behind the curve or overreacting to inflation. It was stated that China has both geopolitical and domestic risks. Growth will slow down and the housing sector will be affected. Other risks highlighted by the participants include supply chain problems and stagflation.