Prediction Number 10: Global Growth Returns In 2020

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 201620172018, 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 10: Global Growth Returns

All we heard about in 2019 was slowing global growth, trade wars, contacting manufacturing PMI’s, yield curve inversion, and of course, recession fears. That will not be the case in 2020.

The US never even got close to reaching recessionary levels in 2019, with GDP growing at 3.1% in 1Q, 2% in 2Q, and 2.1% in 3Q. Hey, even the fourth quarter suggesting a recession, with the Atlanta Fed GDPNow tracking at 1.7%. Making all those fears a giant waste of time. Even Germany never went into recession, it was close, but no recession. 

Hey, but it got the Fed to hold off from raising rate, and even cutting them three times, as yields plunged.

Now, as 2019 draws to a close, there are signs that PMI’s are bottoming. Also, the global markets are acting as if global growth is about to come roaring back to life in 2020. The all-word ACWI ETF has moved back to its all-times and is on the cusp of breaking out.

all-world

Key export economy stock markets such as Germany have seen its DAX index climb back to its all-time highs.

germany.

Meanwhile, Japan has seen a significant recovery as well, and could soon reach levels not seen since the early 1990s.

japan

Then, of course, there are vital semiconductors stocks such as Taiwan semi that have rocketed to all-time highs, breaking free of a nearly 2-year period of consolidation.

taiwan

 

Of crouse, there is also the all-important S&P 500, which has rocketed to record levels.

s&p 500, spx

 

Even 10-year yields have ticked higher off their lows in recent months, suggesting that perhaps the worse of the global slow down is behind us. 

1 2
View single page >> |

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.