5 Must-Buy Top-Ranked Mid-Cap Stocks For 2020

Wall Street started 2019 on a solid note, quickly erasing the loss it suffered in 2018. The momentum continued throughout the year, barring some short-term fluctuations. The U.S. economy is in good shape with a robust labor market, higher consumer spending and a dovish monetary stance taken by the Fed. U.S. GDP in the first three quarters of 2019 also surpassed expectations despite the fact that the economy is growing for the historically longest span of 11 years.

Moreover, the possibility of the signing of the phase-one trade deal between the United States and China in early January significantly boosted investors’ sentiment in December. This is a major step toward resolving a nearly two-year long trade dispute between the two largest trading countries of the world. This trade dispute and subsequent tariff war not only affected the economies of the United States and China but also slowed global economic growth.

As a result of the positive development on the trade war front, the three major stock indexes ---- the Dow, the S&P 500 and the Nasdaq Composite ---- have gained 22.4%, 28.6% and 34.8%, respectively, year to date. Notably, aside from these three large-cap centric indexes, the S&P 400 Mid-cap Index (SP400) has rallied 23.9% year to date.

Positive News on the Trade War Front

On Dec 13, the United States and China declared that they have reached a phase-one trade deal likely to be signed by the two presidents in the first half of January. U.S. Trade Representative Robert Lighthizer said the deal will address intellectual-property disputes along with strong enforcement provisions and financial services and currency issues in addition to tariff rollback and higher agricultural purchase.

On Dec 23, The Wall Street Journal reported that China’s cabinet has agreed to lower tariffs for all trading partners on more than 859 types of products including pharmaceuticals, frozen pork and some high-tech components to below the rates that most-favored nations enjoy.

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