Stock Market Predictions 2018, 2019 & Beyond
Stock market predictions change every day, as geopolitics is a conveyor belt of news, which impacts the global economy. Essentially, this makes stock market targets very difficult to set.
Investors have prepped themselves for a potentially volatile August, which never came. Some investors are now predicting that this month will be what last month wasn’t. August was the month of records, the bull market has now been going the longest in U.S. history. We saw the S&P 500 hit a new record high, overtaking January’s peak.
In the past few years, August has been a risky month for investors. September does not normally see the stock market downturn normally witnessed in August. Although, there is still a drop in markets from 1928-2018 during the month of September, the average drop is 1% in the S&P 500.
The same factors which make September a risky month for investors are still around. For example, trade-war talks are still ongoing and the midterm elections also provide economic uncertainty. Meaning that like September, volatility will be relatively high in September.
Stock Market Predictions
What do investors expect to occur in the market over the next few years?
Stock Market Predictions 2018
For the remainder of 2018, trade-war talks are expected to continue, causing volatility to stay high. This is detrimental for Chinese stocks and investors looking to make quick gains from them.
The Federal Reserve will be holding one if its eight yearly meetings September 25. Traders are expecting that policymakers will increase interest rates by around 0.25 percentage points.. This will be the third increase this year if the increase goes through.
The FED has a huge impact on short-term bonds, making traders wonder what impact the interest increase will have on their portfolio.
Market volatility is relatively low after this summer in comparison to February, which the S&P 500 fluctuated by at least 1% on half the trading days. Many investors enjoy the thought of volatility, because it is the easiest opportunity to make a profit on short-term stocks.
For investors with less experience, buying when the market is volatile is quite daunting. Pick a long-term goal that can be measured numerically, this will avoid any panic buying/selling. As long as an investor doesn’t inject their entire funds into a stock at its peak, losses can be retrievable.
How To Keep Your Portfolio Safe: Diversifying your stock portfolio is a wise course of action when mid-term elections are looming. Portfolio risk can be lowered by investing in a multitude of companies and securities. Government and corporate bonds may be a wise investment.
Stock Market Predictions 2019…
2018 has been called “the peak of stocks” by 58% of investors surveyed by Bank Of America. The collapse in China’s stock price is an indication of hard times to come for the global economy. If the Chinese stock market drops below its support level at 2,638 then there will probably be a crash to around 2,000 in 2019. Global trade would become quite difficult if the Chinese market crashed, so shrugging of any U.S. risk is wrong to do.
In 2019, China is set to see slowing growth, with economic expansion this year being at 6.3%, next year is expected to drop to 6.4%. This expected decrease in growth rates will also put pressure on the U.S as trade between the two countries becomes more challenging.
UBS have calculated that if trade-war talks escalates any further, the U.S. economic growth will drop by 1%. Globally, this means a decrease in growth by 0.42%.
Bitcoin and other cryptocurrencies are at their brink, with Treasury bonds and gold following suit. As far as crash indicators, these are as reliable as it gets.
Many investors are forecasting that the FED will initiate the next recession, caused by interest rate spikes. A recession in 2019 could cause a 20% drop in stocks. This would take the S&P 500 from 3,000 to 2,400.
Stock market predictions are never 100% accurate every time. Therefore, it is best not to build your portfolio on speculation and market guesses. By diversifying your portfolio with ETF’s, stocks, bonds, commodities and other securities, risk will reduce significantly.
Stock Market Prediction: Top Stock For 2019
The iPhone is the biggest driving factor behind Apple’s share price. It’s been on the market for over 10 years now and has changed technology forever. Apple is one of the most successful stocks and one that most investors have held at one point in time.
The iPhone is set to generate $165 billion in sales this fiscal year, which is 62% of Apple’s entire forecasted revenue. That means that Apple could use this years iPhone sales to buy out Tesla and General Electrics and still have over $10 billion laying around.
As Apple continue to move forward with ventures outside of the iPhone, new revenue channels will open up. Making AAPL stock even more attractive to investors. Making Apple my top stock market predictions for next year.
These are the editor’s top future stocks.