Stock Market Forecast – 2021 Predictions & Projections

Stock Market Forecast – 2021 Predictions & Projections

Stock Market Predictions

The Dow Jones forecast , NASDAQ outlook and S&P predictions are still rosy despite the rocketing Covid 19 infections in Florida, Texas and California.

The recent outbreaks or 2nd wave is dampening the stock market outlook, yet it doesn’t look like the economy wants to slow down for the sake of the Corona Virus.  The rioters and beach/drinking kids put together a nasty assault on the country’s economy and created significant doubt and stock price volatility.

Markets rose on Friday, and tech stocks have been flying high, however earnings reports coming up will likely suppress stock prices for the next 2 weeks.

A Vaccine Will Stifle the Market Pessimists

The media has really been negative on the economy, exaggerating short term issues and pushing stock market crash scenarios.  As ugly as the situation is, it is not permanent. Good news from the Vaccine companies will result in an upward boost, and of course, when the successful vaccine is verified and tested, that will end the pessimism completely. An easy prediction — the stock markets will rocket.

If President Trump enforces job repatriation from China and actually cuts the deficit, that add an extra turbocharge to the economy, making the 2021 outlook very exciting.  And there’s much more about the US economy to support a positive stock market forecast.

Jeff Saut, chief investment strategist at Capital Wealth Planning is forecasting a big surge in the markets coming.  He’s talking about a secular bull market where the S&P could reach 4000.

Futures projected a downward movement today, but that hasn’t happened. Instead all major indexes are up only one hour into trading. The poor quality stock market forecasts, even for one day ahead are alarming.

With $3 Trillion injected into the economy and stimulus expected with more businesses reopening, there’s reason for optimism in the stock markets. And investors obviously feel good about the 3 month to 6 month term, and probably see the end of the recession in 2021.

The VIX has been active in the last 10 days as you can see below, however it’s well down from March’s highs. Here are today’s index levels at end of day:

  • S&P 500 : 3,145 ↓
  • Dow Jones 30 : 25,890 ↓
  • Nasdaq : 10,343 ↓
  • Crude Oil:  $40.39 a barrel ↑
  • Gold: $ 1,807.50 per ounce ↓

The stock market price trends show investors are undaunted as their underlying belief is that the US economic machine will prevail. Adding to the upside potential is a $4 to $5 Trillion pool of cash parked in money markets.  The slumping US dollar (will it be devalued?) has to worry the cash holding crowd and they could move that money to the equity markets when the way looks clear.

As the chart below shows, the NASDAQ has done well, reflecting a good future for tech stocks. However, China announced shockingly about oppressive new laws brought on Hong Kong. This must be affecting market sentiment as it looks like China isn’t worried about a US China Trade war.

Always someone trying to talk down the markets or engineer social events to suppress the economy. Previously, stock market experts were shaming amateur retail investors who were buying too much stock. The criticism is about their level of insight (lack of insider knowledge) and experience.

What will be the next complaint/tactic to try to slow the stock markets?

What is the Story Right now in the Stock Market?

Immediately, it still is on whether President Trump can hang onto the Presidency and the pro-America agenda.  And it’s all about Covid 19 management, and whether stocks have been overbought and are overpriced.  Tech stocks on the NASDAQ have been very strong.

See below for the 3 month, 6 month, 1 year, 3 year and 5 year forecasts and predictions.

Yet, if you’re a long term investor, the summer volatility won’t matter much. Most companies will survive the Covid 19 infection period as we head to a vaccine distribution.  The real issue for investors is which companies will endure the change and come out winners in 2021.

 

Screenshot courtesy of Google.

The growth of self-directed trading is impressive as investors feel they can find the best stocks on their own. With the level of insight and opinion and stats available online, these self-directed investors are still guided by the same investment pros.  It could be Wall Street feels threatened by a change in the investment landscape, with new investment tools, software and advisors becoming more in vogue.

There are plenty of ups and downs recently though to keep them cautious. And the odds of a stock market crash are low right now.

If self-directed trading is working for you, please let me know in the comments at bottom.

Stock Indexes This Week

Stock Market Price Timeline. Screenshot courtesy of Yahoo Finance.

Nevertheless, the Dow Jones forecast, S&P forecast, NASDAQ forecast and Russell 2000 long term outlook are once again positive. The reason the majors have been doing so well, is due to the struggles of small business.

 

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Mad Money’s Jim Cramer

CNBC’s Jim Cramer talked of stocks being overbought and other experts talk about P/E ratios that are ridiculously high. Another correction doesn’t seem outlandish, but today’s stock market price jump shows momentum in on the side of the market optimists.

However, here he’s talking about some bullish predictions.

The May jobs report reiterated the optimism of the markets, despite the recent failure in Covid 19 containment in the Sun belt states. The transition back to employment and production has started and the positive outlook for 2021 seems accurate right now.

See more on the best stocks to buy including Vaccine stocks, 5G stocks, and perhaps small caps on the Russell index. Still wondering about the Amazon stock price, Google stock price, and Facebook stock price forecast? Brush up on the Apple stock price lately. Anti monopoly winds are blowing stronger and might hit gale force closer to the election as neither political party supports monopolies.

Important news of recent is the intent of US lawmakers looking to invest tens of billions of dollars in microchip manufacturing in the US. China has been pouring money into that industry. The rationale for this is due to the pre-eminence of chips in tech innovation as AI, 5G and robotics require faster, newer chips.

That means it’s a national security imperative to have microchips made in the US (see Intel, AMD and Nvidia stocks).

 

 

Where is the market headed for June, July, August and the next 6 months? Likely upward at a good clip, but the next stimulus has to be expertly placed to help small businesses. A few pundits are warning not to spend on individuals because it makes them not want to go back to work.

One solution might to offer stimulus, in addition to their paychecks, to help them get back to normal. Consumers need money to spend, and the poor tend to spend in America.

Cramer Talks Down Stimulus Spending

However, Jim Cramer believes the stimulus won’t work because of social distancing. As long as people have to stay 6 feet apart, they won’t be flying, commuting on transit, eating at packed restaurants, attending big league sports, and working.

Cramer adds concern by saying the stimulus payments ended up in the bank accounts of the big corporations who will end up furloughing employees at some point.  We need a Corona Virus vaccine badly, so is support for the vaccine companies is perhaps a wiser choice?

In the meantime, the violent protests could get get worse, as unemployment, boredom and homelessness are set to rocket.  Hopefully, reopening businesses will accelerate revenue. Those who have work at home arrangements could succeed.  The work model is definitely going to change and work at home is a fantastic route out of this recession.

Perhaps Cramer is helping us see the solution.

Top Gainers This Week

Screenshot courtesy of Yahoo Finance.

So far, stock market experts haven’t been able to forecast for one month, let alone 3 months or 6 month projections. Those in the housing market too, can’t pick up trends either. It seems some political, media story, or biological threat enters the picture daily making contorting predictions.

Stock Market News

What’s the relevant stock market related news this week?

  • unemployment claims lower but still in the millions
  • consumer sentiment index rose to 73.7 for May, up from April’s 71.8
  • U.S. retail sales jumped in May to $447 Billion
  • retail store discount pricing helping to grow sales
  • President Trump pressuring Corona Virus researchers for vaccine by end of year
  • US China cold war looking more certain and China’s supply chain in jeopardy
  • President Trump puts the Kibosh on Democrat’s stimulus plan
  • President Trump blocks computer chip sales to China
  • consumers running out of stockpiled items and starting to penny pinch at retail
  • another big retailer goes bankrupt

Investors are wondering if now is the time to buy cheap stocks with big potential in 2021, or if this market still hasn’t seen its bottom. Smart investors buy when the best stocks are cheap. We’re near the bottom or second drop in the W recovery. But should get greedy and wait some more.  Jim Cramer advised to buy 2 months ago.

See what Cramer’s says about these latest “selling squalls” on the stock markets.

Check the Tesla stock forecast along with forecasts for Amazon, Apple, Google, Facebook, and Netflix. See the post on best stock picks, best 5G stocks, and whether oil stocks are the best bargains of 2020.

Investing in Vaccine Stocks

Should you buy Corona Virus vaccine stocks? There’s a 100 horses in the race for the vaccine.  Are Pfizer and Johnson and Johnson (still has asbestos powder law suits pending) with ones with the least downside, given they have a regular range of consumer products to fall back on?  They may come up with a vaccine too.  Some of them pay no dividends, and if they did produce a vaccine, they might become a takeover target.

Check out the top 5 Covid Vaccine stocks:

 

Some economists and experts forecasted a W shaped recovery. Is the second dip looming, or are we free and clear from here on in?

As lawsuits and trade embargos begin against China in the last half of 2020, we’ll see more market instability. A cold war is looming and that will bode well for the US economy.

Barchart’s Top Gainers

I’m sure you want to get to the top gaining stocks to see which are positioned to rocket higher.

Screenshot courtesy of Barchart

The reopening of businesses across the US added to a potential additional trillion dollar aid package means the economy could be ready to bolt forward. President Trump and the Fed seem to be getting behind the resurgence.

If we get past the dour 3 month and 6 month outlook, the 1 year, 5 year and 10 year projections for the US stock markets look promising. 2021 will be the beginning of strong stock market bull run. The oil price forecast could make the start up period even better.

Goldman Sachs forecasts the S&P 500 companies will fall 33% in 2020, and then rocket up higher than 50% in 2021.  The outlook for buying stocks during the rest of 2020 might be much better than the pessimists think.

Corona Virus Stocks, Trending Stocks, or the Best Long Term Value?

If longer term projections and outlook are your guide, it’s just a matter of finding the best stocks to buy.  Check out the top trending stocks of late and recheck gold stocks too. The race for a Covid 19 vaccine is providing a lucrative payday for lucky investors: see the top vaccine stocks.  There’s big talk of oil stocks, but there is no demand for oil so production cuts won’t work. Also, review the Dow Jones forecast for it’s 3 to 6 month projections.

Other economists and stock market forecasters (Jim Cramer too) are suggesting a U shaped recovery is ahead of us, or that we’re already into it. Others believe this is a W shaped recovery with the next dip just ahead. Recent developments might suggest the W projection is dissipating.

Sector Watch

Which sectors are offering up some solid stocks to buy? Is consumer products companies the right choice?

Sector Watch. Screenshot courtesy of CNBC.

VIX Volatility and the 3 to 6 Month Forecast

What is clouding the 3 month and 6 month forecast? It’s the slow return of consumers, a resurgence of Covid 19, low GDP output, low corporate and business earnings, poor earnings reports, sudden historic high unemployment and overall pessimism fueled by the media. The plight of small business is important to note. The failure rate of SMBs could be high in the next 3 months, and travel related businesses may not recover at all in 2020.

Also clouding the long term 5 to 10 year projections is a global debt crisis fueled by every nation spending all they can to survive this.

Right now, investors are focusing on which are the best stocks to buy, in anticipation of a big market rally in June or July.

News from Johnson and Johnson regarding testing of a Corona Virus treatment/vaccine had driven up stock prices  recently however each day brings a market changing news. It’s likely we’re into a shutdown for the rest of April, and in NY till June.  See major stock prices listed below via the live stock price widget. Also, it might be time to investigate AI stock prediction. Artificial intelligence and investing are a thing now.

What are the Best Stocks to Buy Now?

Looking for the best stocks to buy?  Check out companies ready for the recovery and be wary of potential bankruptcies. See the forecast for the Dow Jones and the NASDAQ forecast.

One stock market analyst said this could be W recovery instead of a V or U shaped recovery. That means we could be in for another mini stock market crash, or let down. The fact China has recovered and is opening up for business again, means the US will likely follow a similar path.

Jobless Claims Jumping

Last week’s 1.5 million jobless claims added to 20+ million unemployed isn’t phasing the stock market outlook.  Given gold and oil, and real estate might not be suitable alternatives, investors are fully booked with next years stock values. Optimism is strong.

The approval of the $2 Trillion economic stimulus package is finally giving hope to investors.   See the stats and videos below. If we’re not at the bottom of this recent bear market or stock market crash, at least the 2021 stock market forecast is much brighter.

In this post, see the: latest trends and projections, top gaining stocks, top losing stocks, what caused the recent market crash, the 5 year forecast from different sources, a sector watch, along with the best stocks to buy during this dip phase. Good luck finding the best stocks. And it might be time to investigate AI stock predictionI Know First is claiming its stock market forecast based on deep-learning generated returns up to 161.77% in 3 Months.

Which Stocks Will You Grab Up?

Jim Cramer says to look for individual company stocks because he’s sure they’re going to rise strongly. No need for ETF’s at all! Check out Google stock price, Apple Stock Price, Amazon Stock Price and Tesla Stock price.

It appears we’re officially into a stock market crash.  Smart investors won’t be panicking. They’ll be patiently examining top losing stocks and combing through the best bargain stocks. There’s nowhere to invest other than stocks, so investors are buying $USD it appears.

It’s an embarrassing time for the stock experts as they can’t get a grip on what’s happening in these markets. The Fed just announced another rate cut and the government is preparing stimulus to help struggling businesses.

What Caused the stock market crash?

Here’s the key factors that took the market down 2 months ago.  Now we’re on the incline and the 5 year outlook is especially good (for investors who buy the best stocks now).

  • Corona Virus work stoppage
  • WHO pandemic declaration
  • growth in US virus cases and deaths
  • US travel bans for Americans and advice to stay at home
  • oil price wars
  • bond market weakness
  • global economic setbacks
  • government corrective actions not enough to solve the issues

Which are the Best Bargain Stocks to Buy?

Smart stock market investors are researching all the major exchanges for the best bargain stocks to buy.  It might mean watching stocks daily to see which low priced stocks have the best upside potential. NASDAQ and the tech stocks seem to in demand, as the virus runs its course.

The run on Price of Gold recently may show the oil countries are selling gold to say afloat. The price of oil has sunk below $20 a barrel again today.  It will be a boon for most American consumers, and others around the world as vehicle use and travel restart.  Price of gasoline from California to New York has dropped significantly.

Stock Market Indexes

Stock Market Indexes. Screenshot courtesy of Investing.com

While all of this extreme market volatility is subsiding, investors worldwide are still nervous. Investment advisors and experts will have their ultimate tests in the coming weeks and months. Volatility and political strife seems to beget more of it.

Oil Prices Coming Back

The latest oil futures show oil prices climbing above where they are today at $25 a barrel.

 

Perhaps AI stock prediction and programmatic trading platforms are measuring these sorts of things.  No one is talking about that right though.

The virus panic is shutting down China’s supply chain to its customers, and would cause a recession short term. One expert is talking 40% losses which is a stock market crash. See more on the China Economic Forecast.

Short term, it will cost corporations and small businesses. The travel sector is crashing. Long term, it still means companies around the world would turn to more regional supply chains which are more reliable, in future.

It’s important to know that markets always bounce back after these steep losses however it doesn’t look like we’re at the bottom of this correction/panic.

The VIX is on a wild ride. Where will it go tomorrow?  Just a side note, do you think AI stock prediction tools can help see through such volatility? This spring and summer weather forecast is positive which should help farmers and the vacation industries.

Investors should watch stocks hit hard by the virus as this could forewarn of poorer performance from those companies going forward. The market darling Tesla for instance is taking a big dive. High flying Amazon may take a big dive during this outbreak which after all, hasn’t hit the US yet. Google and Facebook may see revenue losses from reduced advertising during this 1st quarter.

The Stock Market Forecast

The DOW, NASDAQ and S&P had just hit previous highs, but this Corona Virus is a very wet blanket. So what was a rosy situation as we started 2020, is quickly souring.

However, the pandemic hasn’t hit the US. The US economy is still solid and improving, but is it exempt from the virus fallout?  Some suggest the US will actually benefit from China’s new disease as manufacturers decide that production should move back to America.

Here are the key factors affecting the ever improving outlook for the US stock market:

  1. US job numbers — jobs will come back by 2021, but lower than before
  2. The April PMI® fell to 41.5%, down 7.6% from the March reading of 49.1%
  3. fears about Corona Virus in North America beginning to decline (case number falling)
  4. President Trump weathering the Democrat media storm
  5. interest rates will stay low and perhaps go negative
  6. More talk about US import tariffs and US self-reliance
  7. weak earnings but not as bad as expected
  8. US companies such as Tesla making a lot of noise
  9. oil (forecast to sink below $40) and no demand growth for 2020
  10. US dollar looking stronger

Market Forecast for Next 6 to 9 Months

Economic recessions, normally end with a rocketing surge, usually because interest rates drop. This graph shows the current recovery from 2008 is one of the slowest on record. That might mean there’s much more left in the tank to keep this bull stock market going.

Chart courtesy of Economichelp.org

And investors in big corporate stocks seem to be fairly confident of that. They’re jumping on everything from Google to Tesla to Gilead stocks as we progress away from the pandemic.

Once in a lifetime Opportunity for big short term and long term equity gains. See the Best Stocks to Buy

Check the extensive stock price list and stats below for best picks.  Also check out the AI stock picks, and AI stock trading software and see the market pages for real time price quotes.

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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, 2019 didn’t turn out all that badly.  Hopefully this optimism will brighten the housing market forecast for 2021 after languishing in pessimism.

When Will US Consumers Return to Save the Markets?

It will take more than a 3 month shock to upset consumers. Banks too are very strong coming out of this recession. Bailouts help.  And President Trump has made no mention of taking action on the US monopolies, Google, Facebook, and Amazon which would cause a ruffle for a while. We’d have to think the FAANGs will do well in 2020 until monopoly charges are finally laid.

Questions About the Stock Markets

Your questions about stock prediction and 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?

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 

Screenshot courtesy of longforecast.com

Will Stock Prices Rise This Year?

The stock price trend is upward with no chance of a stock market crash.  With rising labor market constraints, investors are wise to investigate artificial intelligence.  AI marketing is the most recent sector to rise in effectiveness with AI. AI stock prediction is rising in popularity.

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. Tesla stock price is on fire.

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.

Continue to Stock Market Forecast Part 2

 

More interesting insight: Stock Prediction | 3 to 6 month OutlookStock Market Forecast | China Economic Forecast | Stock Market Predictions Part 2 | Oil Price Forecast | Russell 2000 Forecast | Will Stock Prices Do Down in 2020? | Gilead Stock PriceBest 5G StocksStock Market Projections |  Linkedin | Facebook2020 Weather ForecastUS Housing Predictions 2020 | Google Stock Price Forecast | Apple Stock Price Forecast | AI Marketing Software | AI SEO Software | AI Marketing | AI Stock Market Prediction |  Tesla Stock Price Outlook | Amazon Stock Price Outlook | US Economic Forecast 2020 | US Job Outlook 2020 | Sitemap

22 years of experience as a content researcher, strategist and SEO expert for marketing agencies and his own company. Gord's investigation into housing markets, stock markets, and AI marketing strategy helps clients achieve market dominance. Some of Gord's blog posts have achieved half a million pageviews with over 7,000 social media shares, revealing Gord Collins special talents for building reach and impact. Visit the AI Marketing website for an introduction to the AI marketing era. Artificial Intelligence is lending extra benefit to the power of marketing software which is enhancing SEO, Copywriting and Sales. Gord offers a new brand of SEO services and to regain his reputation as a leading SEO expert. See his 2nd book which describes the powerful relationship between SEO and Content Strategy. Gord's passion is researching algorithms, trends, forecasts, and market statistics to establish clients at the top.

There are 2 comments for this article
  1. Bruce at 11:02 am

    Interesting article, not sure what the best investment tool is, to plan investment in markets or extraction from markets. As I got caught badly with the dip in March.
    Given nobody can really predict the future .

    I wonder how accurate S&P500 forecasts are as a starting point for planning, is there any history to show the accuracy of such forecasts ?

    • Gord Collins Author at 12:05 pm

      Thanks Bruce. Good question. There’s not much available on forecaster’s S&P historic prediction success. If they’re not boasting about it, they may not have even beaten the market. There’s no telling about the political factors but right now, the relationship with China is heading down. That will benefit the S&P and Dow Jones, and the NASDAQ seems to be already ahead of the curve. And if President Trump doesn’t get elected, the markets will likely collapse. Investors will evacuate the US markets.

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