Yahoo Finance Live host Brian Sozzi offers a speculative forecast of what to expect in 2022 in relation to market corrections, the housing market, Kohl’s, Coinbase, Robinhood, Intel, Apple, Microsoft, and Berkshire Hathaway.
Video Transcript
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JULIE HYMAN: It is the moment you’ve all been waiting for– at least the moment I’ve been waiting for. Brian Sozzi offering up some of his predictions for 2022. Take it away, Brian.
BRIAN SOZZI: Yeah, and I’ll add the caveat off the top here, Julie. I want to make these somewhat achievable predictions. I didn’t want to come out here and make buffoonish calls. I am not Nouriel Roubini. First prediction here at least one 20% market correction next year. I think the market will have to adjust at some point to this new reality of the Fed hiking interest rates to control inflation. At least one 20% correction at some point in the year.
Next up, home prices up another 10%. I think that is certainly doable. This year, a very strong year for home sales, home prices. Next year likely to be the similar– really see similar things because inventory remains very low.
Next up, one we talked about early in the week, but I will reiterate it. New management at Kohl’s. Why? Because it really needs it. The company is facing its second activist investor attack right now. It fended one off earlier in the year. Bottom line the, stock price has been absolute trash for the past five years under current management. They need to change it up.
Next up, Coinbase and Robinhood shares end the year higher. Both of these stocks, IPOs of this year, have been under severe pressure this year. I think at some point next year. You will see investors start to step in here under the thesis that both of these companies are operating very strong platforms with solid moats around them.
Next, I would say this is very achievable. Microsoft and Apple end the year above $3 trillion market caps. Apple is knocking on that door right now– about 2.93 trillion. Microsoft at about $2.6 trillion. Theoretically, both can get there sometime in the first quarter after strong holiday seasons.
Next up, Intel will buy GlobalFoundries. That rumor was making the rumor mill in the summer, here. It makes sense to me. I’ve covered Intel extensively this year. I think Pat Gelsinger wants to– the CEO– wants to make a big splash. Wants to just increase capacity for Intel around the world. One way to do that is to pay up to buy GlobalFoundries– a Fab maker.
And last but not least, Julie, Warren Buffett, I think, this year passes the CEO baton at Berkshire Hathaway. This year, he signaled for the first time, via Yahoo Finance exclusive coverage, that he’s thinking that Greg Abel might be that successor to him as CEO. He’s 91 years old. Again, there’s no outward indications that he’s slowing down, but still, at some point, you would think there has to be a baton switch atop Berkshire Hathaway, and maybe next year is it.
JULIE HYMAN: That’s all? Why not 20 predictions, Soz?
BRIAN SOZZI: I did have 15.
JULIE HYMAN: I’m just kidding. You the blanket approach I like this.
BRIAN SOZZI: I did have 15, but I had to make a TV-friendly.
JULIE HYMAN: As you know, I do not make predictions as a matter of Julie Hyman policy. However, the only quibble I would have with these– because they do seem quite achievable– is that if the market goes down 20%, that ain’t just a correction, bud. That’s a bear market. I don’t know if we’re going to see another one of those so soon after 2020, but, you know, could be.
BRIAN SOZZI: Well, notice, you know, the great way to make a prediction, Julie, is it’s never really put a timeline on it. I said at least one 20% market correction. Didn’t say what month didn’t. Say what week. It may happen at some point next year, so when it does happen, we can come back here and just say how amazing we were.
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