Stock Market Forecast – 2020 Predictions

Stock Market Forecast – 2020 Predictions

Stock Market Forecast 2020

The DOW, NASDAQ and S&P finished in fine style last year despite the pessimism of some experts.  The NASDAQ is at an astonishing new high above 9000 and is up 13% in the last 3 months. This is the index to focus on.

The S&P is above 3200 now, (up 9.7% in the last months), another record and the Dow is perched up there too. Is there any potential for a stock market crash?  How much further can stock prices rise and when will stock prices fall?

 

Check the extensive stock price and stats below, and see the market pages for real time price quotes.

The average investor has a lot of questions. Get your answers here. Playing follow the leader is a dangerous investment strategy if this is a stock market bubble. The major tech stocks have some serious threats to deal with, while small business growth is providing a viable, alternative investment opportunity.

For a year that was predicted to be a total waste due to rising interest rates, trade wars, tariffs, political embargos, and a global slowdown, it didn’t turn out all that bad. Despite the crash/correction predictions for the next 5 years, it seems lenders in the housing market are languishing in pessimism.

Question: Will the Markets Underperform?

It seems Wall Street is calling for a so so year in 2020. They feel global monetary policy and trouble with China’s political and trade relations with the world will stunt economic activity and pull down corporate profits. Isn’t that what they said last year?

The recent signing of the USMCA trade deal has to be a bright spot for further US growth. With the US rosy job outlook, and rising costs for US companies, trade with Mexico and Canada has to be viewed as a pressure relief valve.

Canada and Mexico Help Pick up the Slack

Cheap, underemployed Canadian services in particular are an opportunity for US companies who can’t find workers. President Trump is asking for more imported workers because they’re aren’t enough here to satisfy growing manufacturing plant building in the US.

The USMCA deal helps to keep US goods and services more reasonably priced and helps US exports in a global environment where resentment lingers. Mexico and Canada help to keep the US connected in a healthy way too.

Tech is very healthy in America as evidenced by the amazing NASDAQ stocks performance. AI is one of those fields with tremendous potential. Experts believe it will boost the US economy significantly in the years ahead. From marketing to biomedical to software application development, those firms that use it could see significantly more growth. Look at what it’s doing for Facebook, Amazon and Google.

US Consumers Still Supporting the Markets

If US consumers should decide to buy less, the stock markets could dive in 2020. It’s looking more like a sure win for Donald Trump in the 2020 election and that will get CEOs off the fence about setting up operations in the US.

And President Trump has made no mention of taking action on the US monopolies, Google, Facebook, and Amazon. We’d have to think the FAANGs will do well in 2020.

What are the Best Stock Picks?

Lately, these stocks have performed well in early January. These have been consistent for several weeks now.

Best Performing Stocks on Jan 11, 2020. Screenshot Courtesy of Yahoo Finance.

Questions About the Stock Markets

Your questions about the Stock Markets are likely regarding which are the best stocks to buy, which index has better performing stocks, and whether you should invest in the big tech companies?  The markets are peaking so what will drive stock prices higher?  Should you buy Tesla Stock, or Apple Stock and play follow the leader?

Is President Trump about to deliver a blow to the monopolies if he wins the next election? He doesn’t like Google, so will Google be the first to be broken up?

Screen capture courtesy of OECD

What is the Stock Market Outlook for the Next 5 Years?

The long term stock market outlook to 2024 looks more promising each month because many of the market detractors are losing credibility. Take a look at long forecasts predictions for the S&P, Dow, and Nasdaq markets.

 

 

When Will the AI Era Begin in the US?

The use of AI in business, manufacturing and marketing will is expected to boost the economy by up to $2 Trillion. Even the development of AI software itself will create a boost.  AI is coming in slowly, and the tech companies that utilize it are worth watching.

GM’s surprise move to build electric cars in Ohio could start the landslide of investment in US manufacturing. If investors believe President Trump will last and get elected again, it supports the certainty of a US industry revival.

Could microchips, electric cars, production robots, AI based services, and more be produced in the US? 2020 could be the year optimism broke the pro-Asia backs, and launch the US economy into an unprecedented era of prosperity?

Will Stock Prices Rise This Year?

The stock price trend is upward with no chance of a stock market crash.  In this chart below, you can see well Nasdaq has done in particular. It seems more of the activity previously done in China is returning to the US.  Few are discussing that trend, those US companies that provide manufacturing and are utilizing AI, are positioned to soar in 2020 and the next 5 years.

Major Stock Index Stock Performance last 5 months. Courtesy of Yahoo Finance

Yes, with US wages growing, unemployment low, and interest rates remaining low, you have strong evidence that Google stock price, Facebook stock price, Apple Stock Price, and Amazon stock price growth will continue in 2020.

It’s still wise to take a look at smaller, up and coming tech stocks on the Russell index.

5 Year Long Term Forecast Optimistic

The 5 year and long term outlook to 2024 look really good too because the American consumer is well employed.  The latest jobs outlook report is excellent. The 2020 to 2024 5 year forecast period is not priced into the market, but instead on current earnings/sales.

Although President Trump is being harrassed by the Demo’s TV hype-filled impeachment party,  his pursuit of a real trade deal with China is being viewed optimistically.  See the stats below that support an optimistic market prediction.

Find the best stock picks that are making the biggest improvements below and more about the 2020 stock market forecast. Apple has hit new highs while Amazon and Netflix suffer. Find out what Jim Cramer of Mad Money thinks of the stock markets and the best industries.

Looking for the latest Apple stock price, Amazon stock price, Google stock price, Facebook stock price or Tesla stock price? Learn more about what underpins the potential of these Faang stocks.

Volatility from the Trade Deal: Splitting up a China agreement into phases likely won’t be successful. However, there is hope that something positive will evolve from negotiations with China.

Every time Trump hits China with penalties, the US stock markets jump, tariff revenues skyrocket and US business revenues rise.  Take a look at the Yahoo chart below and notice the last big drop last November. It jumped right back up. China or no China, the US economic forecast looks strong.

The 2020 stock market forecast looks great for US-based companies which sell US-produced products. If the USMCA agreement is passed, it could bolster the US economy and brighten the housing market forecast. However, the Democrats could see this as their opportunity to thwart Trump, thus taking the economy hostage.

Market history: We’ve been talking stock market forecasts for a while now, so how have the indexes done in the last 5 years?

Chart courtesy of Morningstar.com

Technology the Hottest Sector of Late

Screen Capture courtesy of CNBC.com markets report

We understood the Dow 30 industrials would get hit, but he focused on the S&P. How close are we though to the time that China’s markets collapse if a trade deal is not struck?  See the best stock picks for October.

As long as the US stock markets are strong and the employment rate stays high, consumers will keep spending.  The FED is expected to lower rates again and more US production is being ramped up. The indexes are up, and note that the Russell small business index is up 6.7% and is best performing in the last 2 weeks.

Stock Market Price Timeline Chart courtesy of Yahoo Finance

It’s a good outlook for small cap entrepreneurs when the big companies resume spending. The pain of refusal to invest in America will become too great, and the risk of losing market share will force CEOs and boards to act soon.  President Trump is ensuring spending continues during the America First transition.

At this point, we can reassert our belief that China is disappearing from the American economic equation. China stocks will soon be removed from the US stock markets.

Trading Economics Forecasts all markets to sink through 2020 even as prices rise through the most troubled period.

Screen shot courtesy of TradingEconomics

Although the Dow listed companies suffer short term, they will recover in the next 4 years as they move production back to the US. This is what will drive the NASDAQ, DOW, S&P, Russell, and TSX to record highs in 2021.

Stock market predictions:  As Trump tightens the screws on China, the Dow Jones forecast will drop. The true US focused companies listed on the NASDAQ exchange will likely shine this year and next.

 

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With fall approaching, it remains to be seen if President Trump can use taxes and low interest rates to keep the resurgent US economy rolling. Are we on the precipice of a major correction? I predict the US economy will be fine and that unmet consumer demand will ignite US service providers and manufacturing. That could be enough stimulus to reignite the housing markets too.

A glut of natural gas and oil globally could ensure low energy prices and low inflationary pressures. The US is pumping out 13 million barrels of oil per day now and Trump’s threat to take OPEC to court over price fixing is undermining the Saudis attempt to raise oil prices.

President Trump has enough tools to prevent a politically induced slide.  Multinational and US CEO’s however have to be convinced before they will resume investing in American production facilities. It is their reduced spending that has brought about the latest stock market jitters and darkened the 2020 economy.

There is another surprising view of US stock market performance that stems from the America First movement.  While China and global dependence on US consumers wanes, the US is protected and free to focus on strong growth.

Should President Trump be able to force the multinationals to bring operations and jobs to the US, it would be a market boom scenario.

While the turbulence worries some and the media pushes for a recession, there are some experts who believe this is a brief storm before the US stocks launch into another long bull run going into 2021. With Trump’s re-election, US companies sales potential explodes.

As US technology improves, export potential rises, as other countries clamor to stay competitive themselves.  They’ll buy US technology, because Trump may give them preferential trade treatment. So Trump does have extensive powers to support the US economic revitalization through 2024.

Yet, the bond markets beckon investors like Poseidon into another recession.  Which do you believe?

Stay on the Bucking Bronco?

The stock markets volatility might only reflect anxiety over the process of returning manufacturing to the US from China, and the concerns that the rest of the world can’t take care of itself. The question that hasn’t been resolved for some is what an independent US economy (with Canada and Mexico) looks like and how strong it can be. Well, if we return to the 50’s and 60’s, we remember incredible economic growth and performance.

While the media are pushing for a stock market crash and recession, the underlying economy is excellent – employment, wages, GDP, interest rates, and trade losses are all very positive. US consumer retail numbers are excellent and the US is collecting big tariff winfalls.

Hottest Stocks — Courtesy of Barcharts.com

Google Alphabet, Autozone, Domino’s Pizza, Roku, Chipotle Mexican Grill, Shake Shack, Wayfair, Sherwin Williams stock prices are just a few of the best performing stocks of recent. Find more of them on Barcharts.com.

Screen Capture courtesy of Barcharts.com. Check out Barcharts for top gaining stocks.

If we remember that the America First agenda is about America, it might point to good times ahead for American investors and businesses. Still the Dem’s media channels are firm in their 2020 crash forecast and that the global economic withdrawal will somehow come back to haunt President Trump.

Avoiding Media Traps Being Set

I’m of the opinion that President Trump simply needs to weather the media storm, and the US will be back to another bull run stock market after the 2020 election. The President hasn’t put enough pressure on the multinationals to bring manufacturing back to the US. And it’s allowed them to wait it out till the 2020 election. That’s why we’re in this anxious period.

Of course, they’re hoping he’ll lose and jobs will be shipped back to China, then and China’s off to the races again. But what would everyone think of this scenario? Would Americans really be happy with China prosperity and a return of huge trade deficits?  China’s recent human rights abuses, and the WTO’s warnings to China about it’s trade unfairness presents issues the communists won’t deal with well.

The recent stock market crisis was a transition and what’s transpired is new record levels for the NASDAQ, DOW and S&P.  Investors are calming down as recession fears fade, inflation is subdued, the Federal Reserve is pausing on raising interest rates, and the economy is showing resilience. China-U.S. trade talks are progressing and Brexit fears are dismissed

The Feds pulled back on damaging interest rate rises, trade war fears are dissolving, GDP is up, and China/Brexit issues are in the rearview mirror.  Democrats won’t like it, but the markets are poised for much more growth.

Here’s how the DOW, S&P, and NASDAQ markets have rebounded thus summer, yet fallen of late.

Stock Market Forecast Signals

The NASDAQ, S&P, DJIA, and Russell index are 4 key signals in the new American economy. Those analysts who suggested getting out of equity markets might be having second thoughts. See the S&P forecast.

Screenshot courtesy of NASDAQ July 2019 Review and Outlook

Screenshot courtesy of NASDAQ July 2019 Review and Outlook

If all you’ve been hearing is doom and gloom global politics, trade retaliation, interfering Fed chairman, price rises, government standoffs, stock market crashes, and housing corrections, you’ll be relieved that the worst is over. Let’s see a common sense look at the stock markets free from media hype and propaganda.

 

Don’t forget to share this with your friends on Facebook. It’s very positive news.

 

Enjoy this US focused outlook with data from Trading Economics, NASDAQ, Goldman Sachs, and other data providers which provides forecasts for major stock market indexes, and other key market data sources. Good luck finding the best US stocks to drive your portfolio growth in the next 6 years. US companies will outperform the market.

President Trump is showing some moderation in his attitude toward China and that is making some investors feel better about their chosen stocks. Regardless, Trump is making sure US companies are getting time to breathe and develop. A balancing of China trade though, would mean production of goods and services in the US, shipped to China. Few believe China will live up to its end of the agreement.

Best Stock Picks for 2020?

US stocks are gold. The latest US jobs report, 2020 economic forecast and consumer intent look very good. To help you see the real, big picture context, and make good better decisions on volatile exchanges, here is a big picture look at some the best stocks for 2020.

Here’s Goldman Sachs strategist David Kostin with his stock picks for 2019. He also forecasted “the index climbs by 6% to our target of 2875 in 2019” — interview in TheStreet. Kostin is keen on FAANGs.

  1. Align Technology (ALGN) (+22% revenue growth estimate)
  2. Amazon (AMZN) (+22%)
  3. Autodesk (ADSK) (+27%)
  4. Cabot Oil & Gas (COG) (+34%)
  5. Concho Resources (CXO) (+30%)
  6. Facebook (FB) (+27%)
  7. Netflix (NFLX) (+25%)
  8. Pentair (PNR) (+22%)
  9. Vertex Pharmaceuticals (VRTX) (+22)

He advises high revenue growth firms, and that has to favor US companies. There’s still some value in investing in Faangs, such as Facebook or Google. Facebook had a superb 1st quarter earnings report. See our best stocks picks for 2020.

Why US Stocks Will Win in 2020

US Stock market potential is huge for 2020 and beyond, yet multinational corporations and their investors want to stop the Asia to US transition. They believe cheap Asian labor and products are more profitable.

For them breaking free of Free Trade means tapping smaller pools of labor and not being able to play one government off against another for concessions and minimal taxes. They can’t win dirty anymore nor get bigger margins with scale.  Their cheap labor global supply network took quite a while to set up.

These resistors have media, political power, and opportunity to stop the Trump agenda, and to send booming housing and stock markets off course. They’re finding new ways to attack, but Trump is managing to fight them off.

Those importing foreign goods into the US China will face 25% tariffs. Trump’s opponents will find 2019 and 2020 very difficult and although a stock market correction will happen in the next 4 months, the NASDAQ, DOW, and S&P will find a new level and everyone will move on, until fall of 2020 when the big showdown happens.

Longforecast.com offers an interesting month by month forecast of the DOW which is in the graphic below. They forecast troubled times until 2020, and see 2020 ending spectacularly, although not at the 35,000 point level experts were foretelling last summer.

All of the companies in the DOW, NASDAQ and S&P can still make money in the new US-based economy (auto and chip producers for instance), but it might be smaller American companies and those in the Russell 2000 index you should watch.

Screenshot courtesy of longforecast.com

Questions to Ask About the Markets?

It’s all about questions, because your questions reveal the depth of your understanding. Some simple questions might generate better insight and decisions. It’s your money so there’s no end to your questions.

  • what is the likelihood of a stock market crash?
  • are US Stocks rising because foreign stocks are falling?
  • will SMB stocks outperform the large caps in 2020?
  • how is the US government protecting the development of US-based businesses?
  • which US economic sectors have the best potential for American businesses?
  • are US economic indicators positive (GDP 1.8% and better than expected)?
  • what will happen to sectors when interest rates eventually climb?
  • is a US-only based stock portfolio offering the best potential, at least until the elections in 2020?
  • will FAANG stocks sink further downward if pro-US agenda persists?
  • are the DOW, NASDAQ, S&P, and Russell indexes only reflecting the death of the old economy?
  • is volatility is a sign of how investors are adjusting/transitioning to US business and away from global business?
  • if a recession happens in 2019, could stocks could slide by as much as 20%?
  • which us stocks will plunge in 2019 and which of those make a good buy for the longer term?
  • trade war would only benefit US business even more because it would solely own the US consumer who are very positive at this time
  • should you invest in China, with its 750 million internet users in stocks such as China’s version of Netflix (IQ)? or is everything in China doomed along with its crashing housing market?
  • us economic performance so strong in 2017/2018 and investors wonder if the market has peaked
  • some experts are pushing the idea of the end of business cycle button
  • china/asian companies/stocks are losing their market
  • china economy losing its supports — turning inward now
  • EU is trying to hang to UK and other departing members
  • Saudis indicating they will pump out more oil now so can you expect an oil glut and prices flattening out?
  • will shaky relations with the middle east result in major market changes?
  • is there still a huge demand for housing markets if economic management wants to support construction?
  • is negative sensationalist Democrat media strong enough to talk down the market — and change the focus back to pro-Asia, pro-multinational international corporate perspectives?
  • how will volatility affect nervous investors will get little guidance about what what is really happening
  • should investors profit on the volatility (VIX index) with market timing?
  • will this US midterm result in the usual witn non-incumbents getting elected?
  • Is the Fed chairman trying to move the market back to fundamentals and traditional behaviors?
  • Is the Fed chairman pushing up rates suggesting his belief the economy will improve in 2019/2020?
  • will the Fed raise interest rates and move to end this business cycle?

Bad Advice: “If Trump were able to successfully pressure the Fed into adjusting course, it could have sudden and unpredictable effects on the U.S. economy. Markets have long seen the independence of the central bank as a critical ingredient in stability, and Powell has vowed to uphold it” —  from a Portland Herald Story.  Trump has managed to get Powell to hold off on interest rate rises which we now know would have crippled the economy.

  • Is the economy adjusting to new technology such as AI, automation, heartland growth, Internet of Things, G5 wireless?
  • will volatile, AI robot-controlled ETF funds could cause a market crash – ETFs valuations trading is dictated more by the buying and selling of the funds, rather than by company’s own profit fundamentals?\
  • do artificial intelligence systems really understand Trump and the new US-based markets?
  • as international companies/economies weaken, will the desperate move to US markets grow pushing the dollar higher?
  • how effective can the Democrats be in taking down US growth, small business growth, American consumer optimism, and tax benefits for US businesses, low rate business environment in the US, can they hide/downplay the dangers of moving business back to Asia?
  • will the EU finally fall to pieces without tariff-free access to easy US markets and fend off China dumping?
  • how much could inflation and high interest rates erode US GDP?
  • how much will rising wages (forecast 4.8%) help improve demand for US goods/services?
  • how much will the national deficit and trade deficits slow economic performance?
  • is your financial/stock market advisor a democrat or republican?

Stock Market Forecast to 2020

The NASDAQ, DOW Jones, S&P and Russell 2000 indexes to 2019 from Tradingeconomics.

Dow Jones, S&P, NASDAQ, Russell Index Chart – Predictions for 2019 courtesy of Tradingeconomics

Old Market Forecasting Models Don’t Cut It

If the experts looked at their models more accurately, they’d see huge unfulfilled demand, disappearing regulations and drag on the US economy, tax and tariff positives in the US, technology cultural changes, confidence in jobs and higher wages, and an investor/US citizen base just about fed up with Democrat media reporting.

For instance investment experts liked SNAP, Amazon, Facebook, and disliked Tesla. How’s that advice looking right now? There are experts still advising investing in China companies. What does the technical and emotional indicators suggest how that will likely turn out?

US and global investors have plenty of tough questions about where to invest their 401k, and other retirement funds, and how to profit from all the turmoil going on, and whether traditional investing advice is wise during a Trump-lead market. These are uncertain and volatile times with the polarization of the Democrats and Republicans, and with multinational corporations trying to hold onto the old international trade system.

The stock market and economic experts aren’t taking into account political and emotional signals (emotional intelligence?) and not taking threats to US economic growth seriously enough. EU and China opposition along with Democrat media (creating negative events) can scare investors, even though the US economy is booming.

*  the above post includes opinions of the author and do not connote recommendations of any kind regarding stocks to invest in. The material is provided as information only.

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