FAIR OAKS, Calif. (PRWEB) January 04, 2020
Last year was a stellar year. Honestly the worst sector of the market was up over 11%! But, what about 2020? Here are a couple of questions I’m asked as we look ahead into the new year.
Will investors make money in 2020 with the market?
Everyone has seen both great years and bad years together so, what do I think 2020 will bring?
My Crystal Ball shows me the U.S. markets can end higher in 2020 (single digit returns), and end the year lower on the DOW & S&P 500. So far, it’s starting off in a positive light.
Will investors make money? It depends.
When it comes to buying stocks, mutual funds, and ETF's it's going to be quality over speculation that will come out ahead in my opinion. Dividends will also be a factor in 2020.
With the record highs the U.S. stock market has seen there is always going to be some concerns of a correction. The good news for investors is there are ways to make money. Having a “plan” and the right strategy in place is key.
If/when will there be a correction: How bad do I think it will be?
Honestly, I don’t have this answer. I have several theories depending on the circumstances.
I don’t believe the bottom will drop out. A lot of money is sitting on the side lines just waiting for a dip to buy which will keep us out of a large correction initially. A couple of dips are possible as-well-as a mild recession. The manufacturing sector is already showing the tell-tail-signs of being in a recession period now. China is still a wild card and many have election concerns.
The one bright light is the Federal Reserve. They have indicated they are not going to mess with interest rates. Typically, what kills the stock market is a wild Federal Reserve. After the mess they created in December of 2018, the Feds are keeping a low profile.
So, as-long-as the Fed’s are not making us crazy with rising interest rates, the general public (you and me) aka “Consumers” are confident in their employment and still spending money on big ticket items like: housing, cars and everyday goods… 2020 should be a good year.
What Investors need to know:
Having a plan and some funds to invest when prices are low is the best way to come out ahead. Remember, that no one ever made money panicking in the stock market. That’s when shopping for stock investments is fun and profitable!
Being “optimistically-cautious” rather than getting too aggressive right now is how smart money is investing. No one wants to take a loss that takes several years or a decade to recover from by being too aggressive.
Having an investment strategy that can zig and zag quickly is the way to go, especially after the stock market has made record highs in 2019.
Anything is possible! That said, I would rather hope for the best (single digit gains), and have a plan for the worst that can reduce losses if they come our way, and rebound really quickly. There are a number of ways to set up your investment accounts that can weather a bad market period, and have the ability and agility to capture market gains. Isn’t this what everyone wants - the best of both.
Happy New Year & Happy Investing!
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Joyce Blonskij, Financial Advisor
Blonskij Financial Services, Inc
7840 Madison Avenue, Suite #107,
Fair Oaks CA 95628
ph: (916) 534-7327
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