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. Nevertheless, prognosticators are still trying to predict some trends that could affect the stock market. To know what are these stock market projections floating around, here are a few of these information that sources are presenting.
The number one thing you should find out are disappointing earnings 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 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. 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. Among those who trade stocks, bear markets signify panic and pessimism. 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.
To have some peace of mind, it is important that you remember that stock market projections are just what it means, projections. In other words, the things pointed out beforehand may not necessarily become a reality this year and for 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. With the fluctuation going on the past years, this is a topic of discussion that traders will continue to talk about. Just keep on being informed then to get a good read on the stock market.