Why No One Talks About Anymore
Some Tips on What to Watch out For in Stock Market Projections
People investing in the stock market have found it difficult nowadays to get a good grasp of it, saying that it is more volatile now than before, thus costing them more money. Nevertheless, prognosticators are still trying to predict some trends that could affect the stock market. To know what are these stock market projections floating around, here are a few of these information that sources are presenting.
One thing to look out in reports are those showing earnings that are disappointing. Stock traders are used to seeing growth in earnings in the past year, however, several stock market experts are predicting that earnings reports will not be quite as strong in 2019 or 2020.
Number two factor is to expect GDP growth to go down like dropping 1 percent, and although may bounce back to 1.7, investors would find this even lower than what they 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.
One type of stocks that traders are cautioning to limit investing are tech stocks for possible underperformance, and this is another factor to consider. You will find these stocks in the tech space and in different 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. Bear markets are viewed to lead to pessimism and lots of panic among those traders of stocks. As you experience rolling bear markets, this is because some specific sectors are all at once experiencing a large decline, which makes people worry on what will happen next.
To be in the game, bear in mind that stock market projections mean exactly as they are worded, a mere projection. In other words, the things pointed out beforehand may not necessarily become a reality this year and for the years to come.
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 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. By being informed, one will get a good read on the stock market.