Some Pointers When Forecasting Stock Markets
People investing in the stock market have found it difficult nowadays to get a good grasp of it, saying that it is more volatile now than before, thus costing them more money. On the other hand, prognosticators cannot be stopped in making predictions as to what would be the stock market in the coming years. To know what are these stock market projections floating around, here are a few of these information that sources are presenting.
The first thing to look out for are disappointing earnings shown on reports. There has been a growth seen by stock traders in the past year, but, in 2019 or 2020, many stock market experts have the prediction that earnings reports will not be as strong.
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 thing to consider are tech stocks which traders are cautioning against investing too much for it this stock could end up underperforming. Be informed that these kind of stocks are found in the tech space and in various sectors.
The next to beware of is the bear market, words that every trader would hate to hear as the stock market is seen going up and down. Among those who trade stocks, bear markets signify panic and pessimism. 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. Just keep on being informed then to get a good read on the stock market.
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