What’s In Store for the Stock Market in 2020?

With 2019 gone by, it is time to devise new business strategies for the upcoming year. It is not enough to simply keep up with the technological trends, but also to keep an eye out for stock market changes in order not to be blindsided by a sudden shift in supply or demand of a product or service. Here are a few predictions about what might happen in 2020. Remember that these are not guaranteed in any way.

Bear Market?

Sadly, it would appear that many companies that were expected to grow and make a big impact in the market are going to go down. Not under, mind, you, but we are talking about a potential drop for tech moguls upwards of 10%.

Furthermore, globally, there is a slowdown that refuses to stop. Some of this is attributed to China’s trade policies, while others are instant on the climate change as the main culprit in the issue, as trade deals and transportation of goods are made difficult by the somewhat unpredictable weather. Supply and demand will also change over time, so it is hardly possible to effectively plan ahead.

On the other hand, Goldman Sachs predicts that we have seen the worst of the slowdown in 2019, believing that 2020 will bring a growth of 2.3% for the US market. Several economists also claim that the chances of a recession are diminishing and will continue to do so.

China, the US, and Brexit

Once again, politics play a huge role in the global economy. Some of China’s trade policies have made the US impose a number of tariffs on goods coming from China. The most notable issues are copyright infringements, treatment of workers, and technology theft. While both countries have expressed some form of readiness to negotiate a trade deal, it would appear that they will still not be seeing eye-to-eye in 2020. One of the reasons is China’s reluctance to continue negotiations with a president that is facing impeachment.

Turning to the UK, if Brexit pulls through, it could mean more stability to the pound and the relationship between the UK and the US companies. However, Brexit has become a running joke that is not likely to complete its course in the following years.

Wall Street Journal

According to WSJ, we don’t need to fear the worst, but we should also not look forward to the best. The gains and the profits are going to be somewhat modest compared to the previous few years but will be nowhere as apocalyptic as some people believe. Some major companies are going to grow, others will face losses, but all-in-all, the market is going to be relatively stable either way.

What to Invest In

While binaryauctions.com is about investment and tips, we will not name any companies or brands to invest in at this time. Instead, we would advise you to avoid risky investments for the time being. The majority of experts agree that there is not going to be a bull market in 2020 and there are too many unknowns about the future of deals and commerce between nations. Regardless of whether you eventually decide to invest in stocks or not, it would be wise to have a portion of your assets in cash as a backup.

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