Some Pointers When Forecasting Stock Markets
Investing in the stock market is found to be challenging by many investors with an observation that it has become more volatile in the past year eventually making them lose more money. Nevertheless, prognosticators are still trying to predict some trends that could affect the stock market. Let us briefly show some of these stock market projections that you may find for example in iq option login and other sources.
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.
Although stock traders had been more interested in growth stocks than in value stocks in the past years, they could be moving to value stocks with the anticipation of a recession, so it is advisable to keep an eye on value stocks too.
The next thing to consider are tech stocks which traders are cautioning against investing too much for it this stock could end up underperforming. 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. This means also that the factors mentioned above may not necessarily happen in this year and the years to come.
Everyone is keeping an eye on the stock market, and the highs and lows in the present have led to volatility we are looking for. The stock market will continue to be a topic of discussion among people and traders especially with the fluctuation that has been going on in the past months or year. Just keep on being informed then to get a good read on the stock market.