2019 Stock Market Prediction by James R. Wigen – Sr. Portfolio Manager
For 2019 we should see a huge recovery from December 2018 lows with certain stocks, however, we may not see that huge gain from the overall market.
The Trade War with China is a huge part of what the market will do for 2019, and right now they are talking but who knows the outcome. I do believe a deal or understanding to continue to negotiate, will be agreed upon around the March 1st, deadline.
The economy in the US doing well, so well that the Federal Funds rate may keep going up. The next quarter earnings will include companies giving forward estimates, and those estimates will cause analysts to lower price targets, which has already been happening in the past few weeks.
I think overall 2019 will allow the market to recover from its 2018 lows, however, no great growth should be expected. Many high growth companies are down 50% from 90 days ago, and many of them could see 20-30% upside from where they are now. Many Chinese technology stocks are already up 10% YTD, however, they were down 60% over the past 90 days.
I would recommend maxing your 401k for pre-tax benefits, and maybe keep new dollars in the Money Market option in your 401k, which is most likely paying 2-4%.
If you have money you want to invest outside of your 401k, I would put the money into your brokerage account until investing it makes sense, as the money sitting in a brokerage account Money Fund is currently paying around 2.25%.
If you need investment or retirement planning advice or want someone to manage your investment accounts, please contact me and I will see how I can best help you.
Good luck investing in 2019!
Have a Happy & Healthy New Year!
Comments