Will 2020 be the black year for US stocks? The pace of US economic expansion may have slowed over the past few quarters, but GDP growth remains positive, and recession fears have largely eased as the Fed cut interest rates and the return to normal yield curve.
With the shopping and holiday season nearing, labor markets are active and salaries are increasing, and low-wage workers have gained most of the gains recently.
Their wages increased by 5% in October year on year, which is good news for consumer spending
Weakness in several major global markets weighed on investor expectations as early as 2019, but there are signs that the slowdown is on the wane.
The strength of the dollar helped to increase the demand of foreign markets and made international companies more competitive as well as this for US stocks.
The easing of monetary policy by global central banks also helps spur growth in many international markets; it may be too early to say that the global economy avoided a slowdown.
But these signs look promising.
Contrary to JP Morgan’s predictions, some are betting on a continuation of double-digit corporate earnings growth of 10% or more, which has become commonplace a few quarters a year.
But this does not deny the fact that expectations are dampened by geopolitical concerns and trade warfare.
Is this a certain rise and is 2020 2020 the black year?
Analysts say earnings expectations may have fallen too far.
But this will depend on how fears of a global slowdown fade and the dollar peaking, which, if it happens, may be a sudden increase in profit growth.
According to Richard, most CEOs surveyed.
They started reducing capital spending for 2020.
trying to predict how a possible recession would affect their business,
There is growing concern about the ability of companies to achieve targeted results as uncertainty persists.
The trade war has had a major impact on corporate performance, and negotiations are still surrounded by a fence of uncertainty.
yet recent news reports give the markets reason for optimism.
After signals from both sides to the near completion of the first stage of the possible agreement.
But he is cautiously optimistic. While the markets respond positively to recent reports, there is a great deal of anxiety that investors are hiding about the prospect of a sudden collapse of talks as before.
Especially that reports talked about the existence of outstanding points of controversy may cause the escalation of the crisis, not resolved.
It is worth mentioning here that despite recent market gains and relative optimism of consumers.
US business leaders’ confidence remains at its lowest level in a decade.