Several investors now in the stock market have found the stock market to be very volatile nowadays in comparison to the past year, leading to losses in their investments. But still there is not stopping from prognosticators to predict the trends that could affect the stock market. In order to have ideas as to what are these stock market projections floating around, here are some of the trends that you can use as your guideline.
The number one thing you should find out are disappointing earnings reports. Several stock market experts are predicting that the earnings reports in 2019 or 2020 will not be as strong as in the past year when stock traders have seen growth of earnings.
The second thing to watch out for is a tapering of the GDP growth by 2019 with a drop of 1 percent and may rebound to 1.7, but investors will not be happy with this still.
Next is to watch out for a pause in interest rates, especially it has been decided in 2018 by the Federal Reserve that they will raise the interest, but might implement in 2019.
Recently, stock traders are more interested in growth stocks than value stocks, but with a potential recession, these traders could move to value stocks, so better keep an eye on value stocks.
The next consideration to take is to avoid tech stocks, a kind of stock that trades are cautioning us against investing too much because these kind of stocks could underperform. You will find these stocks in the tech space and in different sectors.
Every trader is said to hate hearing the words bear market especially when the stock market is going up and down, so this is something to watch out for. Note that bear markets lead to pessimism and sometimes panic among those who trade in stocks. As some specific sectors experience a significant decline all at the same time, rolling bear markets are experienced which lead people to worry on what could happen next.
To have some peace of mind, it is important that you remember that stock market projections are just what it means, projections. This means also that the factors mentioned above may not necessarily happen in this year and the years to come.
With all the recent highs and lows in the stock market, this is something that we are keeping an eye on which is leading to volatility. The stock market will continue to be a topic of discussion among people and traders especially with the fluctuation that has been going on in the past months or year. By being informed, one will get a good read on the stock market.