2019 is coming a close, and now as we turn towards next year, I present to you a list of 10 stock market predictions for 2020. You can review my list of top 10 predictions for previous years 2016, 2017, 2018, and 2019 to see how I did.
As I did last year, I will start with number 10 and work our way up to number 1 over the final month of 2019. Enjoy!
Prediction Number 9: US GDP Will Grow At 3%
With global growth returning and the importance of the US/China trade war diminishing, businesses will begin to start reinvesting in CAPEX, and that will cause the US economy to surge from its 2% growth rate in 2019.
Overblown Recession Fear Meltaway
Fears of a recession and uncertainty around trade caused businesses to cut back or delay essential investment decisions in 2019. But the recession never materialized. Despite their best efforts, cries from the mainstream media, and the herd-like mentality among investors, the consumer never bought into the hype and as a result, never stopped spending.
US/China Significance Dimisinishes
Meanwhile, the number of goods imported from China is declining at a rapid pace, and that means the importance of the trade war will gradual disappear throughout 2020. This will give businesses the confidence to spend more and allow the economy to come back online and result in the US GDP to grow at 3% or more in 2020.
It could not come at a better time for President Trump, who needs to run his reelection campaign on the strength of the economic and the lowest unemployment rate in half a century.
Hope you enjoyed prediction #9
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