Some Tips on What to Watch out For in Stock Market Projections
Several investors now in the stock market have found the stock market to be very volatile nowadays in comparison to the past year, leading to losses in their investments. But still there is not stopping from prognosticators to predict the trends that could affect the stock market. In order to have ideas as to what are these stock market projections floating around, here are some of the trends that you can use as your guideline.
The first thing to look out for are disappointing earnings shown on reports. Several stock market experts are predicting that the earnings reports in 2019 or 2020 will not be as strong as in the past year when stock traders have seen growth of earnings.
Next is to expect tapering of GDP growth like a drop of 1 percent and may rebound to 1.7 by 2019, but this is still lower than what investors would like.
Another thing to watch out for is a pause in the interest rates to make your move, considering that the Federal Reserve had decided to raise interest rates in 2018, and might implement it finally 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. Tech space and different sectors are where you will find these kinds of stocks.
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. Bear markets are viewed to lead to pessimism and lots of panic among those traders of stocks. As some specific sectors experience a significant decline all at the same time, rolling bear markets are experienced which lead people to worry on what could happen next.
To be in the game, bear in mind that stock market projections mean exactly as they are worded, a mere projection. However, the situations mentioned above may not necessarily materialize in this year and the coming years.
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. The stock market’s fluctuation in the past year or months, have made traders to continue talking about. Getting a good read on the stock market is one thing you can do and this is by being informed on what is going on.