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Our 2020 Stock Market Predictions

Our 2020 Stock Market Predictions

Drumroll…

It’s time for our most profitable predictions for 2020!

Every year, my team and I reveal forecasts that stand to make you a fortune in the year ahead.

For 2019, I announced interest rates would fall and the economy would rise, and begged you to hold on to your stocks.

And so many of you wrote in online, telling us how you’ve profited from your strong hands…

LovingLife29 posted:

“Last December we were ready to give up and cash out of everything. But we stayed with you and we are glad we did.”

KGBooker said:

“When the market was down last December, I bought more shares of stocks that were losers. Didn’t give up like you said, just went all in. It sure has paid off.”

And MotherInLaw555 wrote:

“I was STRESS-FREE throughout the October to December downturn last year. I am so grateful for your sage advice.”

And this year, my team and I are seeing some real game changers coming in 2020.

Today, we reveal a MEGA mega trend for the year ahead.

One company leading the trend has been the fastest-growing brand for two years in a row, and has recently become the fastest-growing across ALL FOUR major demographics in the United States — baby boomers, Generation X, millennials and Gen Z.

Can you guess what industry we’re talking about?

This is the season for shopping and it’s also the season for predictions.

Last year we had some unbelievable predictions and some real winners, including Paul’s call that interest rates were actually going to go down and the market would continue to go up.

We got a lot right. So this year we’re going to take our shot at it again.

Amber’s Appetizing 2020 Stock Market Predictions

According to Morning Consult, the fastest growing brand in 2019 across all age demographics in the U.S. is DoorDash.

It’s an on-demand food delivery company founded in 2013.

DoorDash #1 Across all Generations

As this image from Morning Consult shows, DoorDash is the fastest growing brand for Gen Z, millennials, Gen X and boomers.

“Armed with $2 billion in venture capital funding, DoorDash has taken an aggressive expansion approach building out food delivery services in more than 4,000 towns across the United States.”

 

“Unlike its competitors, DoorDash has looked beyond cities and also expanded into suburban areas, capturing a wider range of customers. This blanketing strategy has made for a rapid impact. For the second year in a row, DoorDash is the fastest-growing brand in the country. This year it’s the fastest growing with each generation, including a particularly strong showing among Gen Z and millennials.”

And DoorDash is not alone. Its competitors like Grubhub, Uber Eats and Postmates are all very popular brands across all demographics. For DoorDash to rank number one across all age group speaks volumes. This makes their customer base very substantial with longevity.

Per Bloomberg and the CDC,

“Baby boomers are retiring in larger numbers and living longer. At age 75, men are projected to live an additional 11.3 years and 13 years for women. Those estimates have risen from 8.8 years to 11.5 years since 1980.”

Let’s move on to the following chart. It shows that the food delivery industry market size as a whole is projected to exceed $165 billion by 2024 globally. 94% over 2018, with a compound annual growth rate of 11.4% through 2024.

According to The Atlantic and Cohen & Company, in 2020 more than half of restaurant spending in the U.S. is projected to be off premises and not inside the restaurant.

“In other words, spending on deliveries, drive-thrus and takeout meals will soon overtake dining inside restaurants for the first time on record. Off-premise spending will account for as much as 80% of the industry’s growth in the next five years.” [1]

Now you would think my 2020 prediction is to keep an eye out for DoorDash’s potential direct listing in the U.S. stock market, but I will leave that call to our analysts who is our resident IPO expert. What I will tell you is that in 2020 there will be a booming opportunity in the tamper-proof packaging industry.

Restaurant and Business Online states:

“A lack of trust in food delivery drivers is on the rise. Just 34% of food operators offer tamper-proof packaging. That’s in part because many restaurants, whether full serve or cloud kitchens, struggle to find affordable high-quality tamper-proof packaging.” [2]

One of the drawbacks of ordering online food delivery is that your food may be sampled by the delivery driver before it reaches you. A survey by U.S. Food found that nearly 30%, or one in four, food drivers admitted to snacking on customers’ food while en route to delivery it.

The development of affordable tamper-resistant food bags and packages for delivery items will be a boon for the online delivery business. As this chart shows, the growth for the global food services package market is projected to surge to $90 billion by 2024 from $64 billion in 2018.

This is a mega opportunity for packaging suppliers in 2020. Year-to-date, two publicly traded good and consumer goods packaging companies are up as much as 78%, more than triple the performance of the Dow and S&P and double the performance on the Nasdaq.

This Wednesday, December 11, in my weekly Bold Profits article I will reveal the number one investment pick to ride this tamper-proof packaging wave in the ever-growing food delivery market for 2020.

IPOs in 2020

Right now we have DoorDash, Uber Eats, Postmates and Grubhub as the main players in the U.S. I think there will be three out of four by the end of 2020. I think there will be consolidation in that space. I think that will be good for whichever ones are left.

That will allow some rationalization of the cost structure. Right now it’s hyper competitive and they are all going for broke. Next year by the end of the year profitability will be entering the lexicon of this industry.

These food delivery companies are coming at a lower valuation than they did this year because market expectations have adjusted. Instead of 11 times for the software companies, maybe it’s seven times. I think they are going to be talking more about a path to profitability as opposed to just growth.

2020 will be filled with hybrid direct listings. They are direct listings but with new capital being raised alongside them. This is totally unique.

exchange goldman sachs podcastThis will mean more stocks coming to the market. This weekend I was listening Exchange, a podcast by Goldman Sachs and the person they had on was talking about how mutual funds have not been participating in the IPO markets and direct listings are going to be something that are going to incite mutual funds and bigger funds to start participating earlier in this process.

I have two other predictions. I think the SEC is going to consolidate this rule on streamlining regulations around private markets so small investors can participate in venture capital and private equity deals. I think that’s more toward the end of next year because they move slowly.

Finally, I think that the SEC in 2020 will put a freeze on some of these Chinese IPOs until they agree to comply with the auditing and transparency standards required of U.S. companies. That could be temporary, but I think it’s time for them to comply.

When our pension funds are investing in these companies they should have the same protections whether it’s a Chinese company, Swedish company, Brazilian company or a U.S. company.

Paul’s 2020 Predictions For The Market Overall

There is still an incredible amount of gloom in the market — which I find mind blowing — for us, new highs are positive. Job growth is positive and economic growth is positive.

We would tell you to ignore the bad news media and the doom and gloom folks and stick with us. We told you that through 2018 when we had “the recession that never came,” as one reader mentioned in the comments. That’s a great moniker. In other words, we have been waiting for this recession for nearly two years — the recession that never came.

Extreme Fortunes

We’re still positive. Obviously there will be volatility. There will always be ups and downs. Nothing is ever a straight line. As long as you follow the advice we give our readers, which is called the Rules of the Game, a system of money management, then you will be fine. I believe there is still upside left in this market.

Speaking of phenomenal upside, I want to mention Extreme Fortunes, which is our incredible service that focuses on small-cap stocks generally $300 million or higher, where you have the chance to go for 1,000% gains with every stock pick.

What are your 2020 predictions for the market? We would love to hear from you! Comment below and let us know!

Regards,

Paul Mampilly

Editor, Profits Unlimited

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