5 Bold Market Predictions For 2020

2019 was a spectacular year for the markets and they earned their place in the record books with the Dow up 22.9%, the S&P up 28.9%, and the Nasdaq up 35.2%.

And it’s easy to see why. Our economy is the envy of the world.

Our GDP is pacing at an annual rate that’s higher than the average annual GDP since this bull market began. Unemployment is at a 50-year low. Household income is at a 20-year high. Corporate profits continue to impress. And consumer confidence is near record highs.

We also have low inflation, and still historically low-interest rates.

The best part is, as fantastic as last year was, it looks like 2020 could be even better.

Add in 2 record trade agreements (USMCA and the U.S.-China trade deal), with our 3 largest trading partners, and a wave of new prosperity should send our economy and the markets to even higher highs.

These truly are historic times.

And historic times create historic opportunities.

That’s why I’m predicting the markets will soar another 25-30% in 2020!

That’s right, another 25-30%. So make sure you’re taking full advantage of it.

And to help you make the most of this historic bull market, I’ve asked my team to share their top predictions, and where the biggest opportunities will be in the new year.

And if you’re in the right stocks, that could mean gains of 50%, 100%, 200% and more.

There were 488 stocks up 100% or more in 2019, and 195 stocks up 200% or more. If you weren’t in any of them, maybe this year you can be.

See below for how you can make 2020 your best year yet.

Prediction #1: Monster Comeback for Energy Stocks
By Tracey Ryniec

With stocks hitting new record highs to end 2019, it may seem impossible to find true value stocks. But one sector, energy, has it in spades. How cheap are energy stocks? Energy companies are cash-rich, thanks to years of cost-cutting and drilling innovation, and have been raising dividends and buying back shares.

As a result, the industry has the highest dividend yield in decades. High yields are a sign that they're being overlooked by the Street as even big dividends aren't luring in buyers. Yet. My prediction for 2020? That energy stocks, especially the exploration and production stocks, will make a big comeback as the global economy heats up and demand for crude rises.

Prediction #2: S&P to Soar, and More Profits from Worries
By Kevin Cook

The stock market has a secret for 2020... It's nowhere close to being overvalued before this bull cycle is over. My call for the S&P 500 to continue its ascent is based on 3 ingredients: (1) There is no meaningful probability for recession given the economy's current stability and growth momentum; (2) The Federal Reserve has guaranteed that their monetary policy path will favor asset inflation; (3) Bull markets run to valuation peaks over 20X earnings before a recession is spotted.

What about the tariff battles? Investors stopped caring about those in Q3. Buy the fear and sell the FOMO!

Prediction #3: Electric Cars to Go Mainstream in 2020 
By David Borun

The promise of clean, renewable energy powering the vehicles we use every day is about to change the face of transportation. Electric cars cost less to operate and significantly reduce the environmental effects of burning fossil fuels – a true win-win.

Until recently, they also involved making compromises in terms of initial cost, performance and usable range.

However, the new crop of electric vehicles includes models with long-range and performance that rivals any gasoline car. Improvements in battery technology and a growing national network of charging opportunities is ending “range anxiety,” and prices are now basically in line with traditional gas cars - making choosing an EV a no-brainer for millions of new potential consumers. Investors take note! 

Prediction #4: Investors Will Gush Over Oil 
By Jeremy Mullin

The energy industry has had a tough time since oil prices plunged below $30 a barrel in early 2016. Even with prices recovering, there simply has been little momentum for energy stocks as crude struggled between $40 and $60 over the last few years.

With a China trade deal behind us and the economy still humming, my prediction for 2020 will be a turnaround story. I expect $70+ oil and the energy sector to benefit from continued global demand. 

Prediction #5: Tech Giants to Get Even Bigger
By Madeleine Johnson

I expect that Amazon and Microsoft will continue to dominate the cloud industry; Netflix will still be the number one streaming service thanks to its international expansion, and Apple will see double-digit revenue growth in its Services and Wearables thanks to the strength of its brand.

What investors should do, then, is be bullish on these stocks, especially with a trade deal now on the table and the U.S. economy still growing. If the market experiences a pullback, take advantage. Buy the dip and get your most-wanted stocks at a discount. Most importantly, make sure your portfolio is diverse, with value, growth, and income positions to help capture those gains. 

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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