2020 Forecast: Recession or Not, the Dow Will Rally 13,000 Points
- On average, the Dow has rallied over 13,000 points in each of the last 15 years.
- It has also declined over 11,000 points in each of those same years.
- But you can play the ups and downs and beat the market in 2020 by using this approach!
The Dow Jones Industrial Average, which measures the stock performance of 30 large U.S. companies, has rallied about 13,094 points in each of the last 15 years.
If it tacked on that much in 2020, investors could earn a 50% return in a passive stock fund.
But not so fast…
The Dow also declined an average of 11,831 points in each of those same 15 years.
Check out the chart below, which shows the Dow’s annual rallies and declines from 2005 to 2019.
2020 will be no different. The market will go up … and it will go down.
We can use these shifts to our advantage.
Guaranteed ups and downs give us the chance to make money while most investors sit, wait and watch.
It’s why I developed a trading system to help me predict trades for you all year long.
In 2019, I predicted trades for readers of Winning Investor Daily that returned 11%, 19% and 25% in mere weeks.
And I predict the same for you!
You Will Beat the Market in 2020
In the above chart, I used daily closing prices on E-mini Dow futures. E-mini futures let active traders fine-tune their exposure to the Dow, as they cost less than standard futures contracts.
Note that the blue bars are annual rallies, or the sum of daily gains each year.
And the red bars are annual declines, or the sum of daily losses each year.
The smooth gray line is the difference between the rallies and declines. In other words, it’s the performance of the Dow each year.
Investors who try to match the broad stock market’s performance depend on this gray line.
That’s OK in years such as 2009, 2013 and 2017, when returns approached 30%.
But it’s not OK in years such as 2005, 2008 and 2018, when returns were negative.
So, let’s look at an average year…
The average return in the last 15 years is 9%.
That’s not awful.
In fact, you may be happy to earn 9% next year.
Or you may think 9% is not worth the risk — not when recession could be right around the corner.
Recession or not, you can crush the market during its ups and its downs without sacrificing your other investments.
Add Double- and Triple-Digit Gains to Your Brokerage Account
Here’s a short list of trades I gave to Winning Investor Daily readers to make money in 2019:
Readers could have enjoyed these winners during just the fourth quarter!
Now, notice how long the trades lasted.
Most of my predictions target 8- to 12-week time frames — sometimes longer.
And, as you can see, sometimes the trades unfold even faster, earning double digits in three or four weeks at a time.
Usually, my predictions include a time frame or price target … or both.
Beyond that, readers are responsible for getting into and out of trades themselves.
If you’re not comfortable managing trades from start to finish, there’s another way to put my predictions to work.
I teamed up with Matt Badiali in February 2018. We developed a system to pinpoint double- and triple-digit gain opportunities from the market’s ups and downs.
It’s the core of our Apex Profit Alert trading research service.
In it, we provide our market research and insights, along with explicit entry and exit instructions on our recommendations. This lets you cut down on the guesswork and have the chance to make money with our predictions no matter what happens to the bull market in 2020.
Click here to learn more about it.
And stay tuned for more of my predictions in the new year!
Editor, Apex Profit Alert