Analysts predict 2022 to be successful for Wall Street

Analysts analyzed whether the rapid increase in income of large American banks, which has been observed over the previous two years, will continue in 2022. They noted that Wall Street’s record financial achievement was made possible by the strong demand for financial services for high net worth clients in current years and the huge number of transactions carried out. In 2021, the proceeds of financial institutions such as Goldman Sachs Group and Morgan Stanley accomplished record heights. The past year was also marked by a rapid increase in the bank shares quotations, which exceeded the growth of the stock market. However, according to many analysts, the very high proportion of the conclusion of transactions characteristic of 2021 due to the impact of the implication of the coronavirus pandemic on the market is unlikely to continue in 2022. Analysts predict an 18% decline in Goldman Sachs’ revenue this year from a 2021 prognosis of $48 billion, although this grade will also historically be quite high. According to their estimates, the profits of the world’s largest investment bank could be reduced by about a third this year. Financial conglomerate Morgan Stanley is also predicted to grow more gradually than in the previous two years, FactSet reported. At the end of 2021, bank executives attributed powerful inflationary constraints and the spread of new strains of coronavirus to the main aspect that will affect the economic rehabilitation this year. At the same time, many analysts remained optimistic about the outlook for bank shares, despite the likely slowdown this year in their business.


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Arseny Kudrin

Publicist, trader

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