5 High-Yield Dividend Stocks To Snap Up In 2020

After a strong show in 2019, the U.S. economy is likely to have stepped into another eventful year. Experts believe that a 50-year-low unemployment rate of 3.5% and strength in labor markets are likely to help the economy dodge another recession.

At the end of the third quarter of 2019, the U.S. real GDP had risen 2.1%. The S&P and Nasdaq gains averaged above 18%, while the Dow had posted an average gain of 15%. Going by historical trends, experts believe that these indices are in for another bumper year.

Let’s take a look at how the U.S. economy is poised to grow at this moment.

Geo-Political Tensions

U.S.-Iran tensions have flared up of late, making experts fret about the possibility of greater economic turmoil in the days ahead.

In fact, right after Iran’s missile strikes, U.S. stocks initially plummeted while oil prices shot up. However, this was immediately followed by a sharp rally in stocks and a plunge in oil prices, with the S&P 500 soaring to a new all-time high. In fact, on Jan 10, oil prices slipped toward $65.65 a barrel, boosting investors’ sentiments, focused on rising U.S. inventories and signs of ample supply.

Given this backdrop, experts see some de-escalation in tensions between the nations but they are also not discounting possibilities of a war.

Other Bumpers Ahead

Despite the current air of positivity, investors should be mindful of a few roadblocks.

A recent article by Indiana University’s Kelley School gives us a mixed view on the U.S. economy. It projects the economy to continue expanding for the 12th consecutive year in 2020 but only by a mere 2%, thanks to political dysfunction and international trade friction. Per MarketWatch, the yearly wage growth peaked at 3.4% last spring and has been drifting lower ever since. This is expected to lower consumer spending in 2020.

Also, trade tensions between the United States and China affected international trade throughout 2019. Though both the sides recently approved a "phase-one" deal, some of the controversial issues are unresolved, dampening market sentiments.

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