Stock Market Forecast 2021

Stock Market Forecast 2021

2021 The Breakout Year for the Stock Market

Looking ahead to the best year in the markets where the S&P, NASDAQ, DowJones, TSX, and Russell Indexes are come back strong.  Buy your once in a lifetime best stocks to buy and then enjoy the ride in 2021.

The year of 2021 promises to be exceptionally good, unless one specific political upset takes place. I don’t want to mention that right now though, because our goal here is to find once in a lifetime bargain stocks to buy.

GDP forecasts for the next 5 years are promising. Sure 2020 is a wasted year, but steadily each year, it’s scheduled to grow guided by optimistic consumers who demand growth.

GDP Estimates to 2022. Screenshot courtesy of the Bureau of Labor Statistics

Statista is a little enthused about the long term growth picture. A 2% estimate for 2020 of course needs to be revised. It could be 1% or lower.  Goldman Sachs just reported a 25% retraction in the 2nd quarter.

GDP growth projection for next 5 years. Screenshot courtesy of Statista.

Double Your Money?

You’ve seen the real value of today’s stocks. The real value might have showed up in late 2019, but stocks will plummet further in the coming month(s) well below real value. Smart investors with nowhere to spend their cash, will hold onto their (US Dollars) because a once in a lifetime opportunity will arrive soon.

And you may be wondering why so many have not purchased Gold and Silver. It appears investors are way smarter than anyone believed. They’re holding huge amounts of US Dollars.

2021, the year the US economy and stock markets really take off. In fact, travel markets and housing markets will be back too. After you buy your US stocks at the market bottom, you’ll see them likely double in value by 2021. It depends on how deep this market sinks over the next 3 weeks.

2021 is the Year of the United States of America

This is a US stock forecast for 2021, not for Europe or Asia. It looks like they may bounce back too. Most of their leaders realize by now that President Trump’s efforts have failed to stem the tide of imports and that their exports to the US are still flowing.

The US is improving, just not at the rate President Trump expected. There are a lot of hurdles in forcing US companies to not use cheap labor markets. He’ll need to do more about harmful imports, and in doing so in 2021, the US markets will heat up further including housing.

After the election, if Trump wins, he’ll likely support action on monopolies. Their greed and crushing effect on entrepreneurialism is a negative factor. Watch out for any company that does stock buy backs with their bailout money. The media will take care of them.

The Passing of the Corona Virus

An expert I listened to yesterday, said all these major flus and epidemics hit once with force and then fade away as people build immunity to them. The great spanish flu and SARs are good examples.

The economy of 2020 was damaged heavily by the Corona Virus but as the virus passes the spirit of the free markets will return with a vengeance. Economists and stock market experts all picked 2020 as the year of the great recession. They didn’t specify that it would a long lasting one. They just expect a recession.

Their foresight turned out to be very accurate — only for a reason they weren’t remotely aware of. It wasn’t even the lightning fast spreading virus itself that caused this short recession, it’s the shutdown response.

Nearly every country has gone into a self-isolation mode hoping that Covid 19 will pass quickly. It will pass, although some medical experts suggest a second bout of it will appear. If that’s so, you may want to be cautious for the next few months. Don’t jump on any bandwagons yet.

Find the Best Bargain Priced Stocks

Instead, surveil the available bargain stocks. Stocks prices will keep plunging with or without stimulus money. When no one is working, stock values cannot climb.

Now we’re heading into the depth of the Corona Virus shutdown period. Stock Prices will continue their downward trend to perhaps shocking lows.

How To Spot the Best Stock Picks

  • checkout their P/E ratio — those with the lowest drop are ripe for the highest rebounds
  • low priced stocks with high volume – means everyone is evacuating
  • stocks that thrived during the last rapid price growth phase
  • Russell index where lots of small caps will be decimated and then return with vigor in 2021
  • good estimate of the 5 year and 10 year outlook
  • stocks in high growth sectors such as EV cars, 5G, software, automation and artificial intelligence

See today’s top losing stocks and notice Freddie Mac is among them. The real estate sector hasn’t been hit hard yet, but wait a couple of weeks for that hammer to fall. The 5 year forecast for housing though is good. Real estate just hasn’t fallen far enough.

The top losing market sectors are energy and financials.  Google stock price and Apple Stock price will bounce back too, but percentage wise you might not get the same growth as with smaller companies that were hurt more by this recession.

Stock market expert Jim Cramer of CNBC’s Mad Money was suggesting to buy specific company stocks as opposed to ETFs. He believed there is better potential there.

Should You Time the Bottom?

Stock market technical people try to pull everyone into the world of formulas. That’s for greedy gamblers. Big picture, it’s simple to see that post-corona virus, stocks will fly back just as people go back to work and start buying things. Yes, earnings estimates, cash flow, debt ratios, and inventories will change. You don’t need technical mumbo jumbo.

You might win choosing almost any sector, except the oil stocks which is a gamble. That’s completely determined by the Saudi Leader.

Here’s some more stocks that are bottoming out to watch:

Trading Losers. Chart courtesy of Tradingmovers.com

You can see the full list at barchart.com/stocks/top-100-stocks/bottom where they have plenty of additional data to guide your stock picks. Also visit tradingview at tradingview.com/markets/stocks-usa/market-movers-losers/ for more stock prices.

Don’t forget to have a peak at the economic forecast and broad market indicators to help see the bottom of the market better. Investors don’t need to hit the exact bottom to get incredible once in a lifetime returns.

It looks like the bottom might occur in early April, but that’s still a guess.

 

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