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. 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. Stock traders are used to seeing growth in earnings in the past year, however, several stock market experts are predicting that earnings reports will not be quite as strong in 2019 or 2020.
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.
Another thing to watch out for is a pause in the interest rates to make your move, considering that the Federal Reserve had decided to raise interest rates in 2018, and might implement it finally in 2019.
Although stock traders had been more interested in growth stocks than in value stocks in the past years, they could be moving to value stocks with the anticipation of a recession, so it is advisable to keep an eye on value stocks too.
One type of stocks that traders are cautioning to limit investing are tech stocks for possible underperformance, and this is another factor to consider. Be informed that these kind of stocks are found in the tech space and in various 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. Bear markets are viewed to lead to pessimism and lots of panic among those traders of stocks. You will experience rolling bear markets when certain sectors would experience a large decline at the same time, which can bring worry on what could happen next.
It is important if you want to become a trader, that stock market projections mean as what they are worded, just projections so as you will not go down in your venture. In other words, the things pointed out beforehand may not necessarily become a reality this year and for the years to come.
Everyone is keeping an eye on the stock market, and the highs and lows in the present have led to volatility we are looking for. The stock market’s fluctuation in the past year or months, have made traders to continue talking about. Just keep on being informed then to get a good read on the stock market.