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. 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. 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.
The second thing to watch out for is a tapering of the GDP growth by 2019 with a drop of 1 percent and may rebound to 1.7, but investors will not be happy with this still.
Next is to watch out for a pause in interest rates, especially it has been decided in 2018 by the Federal Reserve that they will raise the interest, but might implement 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.
One type of stocks that traders are cautioning to limit investing are tech stocks for possible underperformance, and this is another factor to consider. 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. Among those who trade stocks, bear markets signify panic and pessimism. 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 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. 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.