As 2020 rolls around, it’s time to prepare your portfolios.
That’s why we decided to move your weekly Markets Insights videos to Mondays! This way, you’ll get a jump-start on the week (and year) ahead.
In this week’s Market Insights, experts Jeff Yastine and Ian King tell you exactly what you should pay attention to in the new year — from election shake-ups to corrections and the coming jobs report.
And how, despite the noise, it still pays to be bullish going into the new year.
In fact, they reveal one chart that proves the market is extremely greedy right now, and what that means for you.
The CNNMoney Fear & Greed Index is at 93 — an extreme high.
As the stock market soars to new all-time highs, investors are faced with a dilemma: Join the rally now, or wait and avoid a potential market crash?
Jeff and Ian agree that while stocks are overvalued, there’s no sign of a recession on the horizon. And the Federal Reserve has indicated that it doesn’t plan on raising interest rates next year.
But that doesn’t mean stocks will only go up from here. 2020 will likely have sell-offs and even a correction.
Those will be great buying opportunities for smart investors who ride the bull market’s momentum.
December’s employment report comes out on Friday, January 3.
The great news of 230,000 jobs added in November helped spur this month’s rally. And Ian says “we could see some more fireworks” if the December report, which will be released at 8:30 a.m. EST on Friday, shows that the hiring surge is continuing.
On the other hand, Jeff argues, if the jobs report is disappointing, it’ll be a chance for you to buy the dip and grab shares of your favorite stocks at a discount.
Stocks will tumble later this year if investors don’t support the Democratic Party nominee’s platform.
Former Vice President Joe Biden currently leads the national polls for the Democratic presidential nomination. But a surge by candidates Bernie Sanders or Elizabeth Warren could spook Wall Street by shifting the Democratic platform toward more socialist policies.
It that happens, Jeff says: “We’ll see the market start to sell off. And whether it sells off a little or sells off a lot, who knows.”
Ian adds there’s no chance that Fed Chairman Jerome Powell will raise rates during an election year. That will boost stock prices and help President Donald Trump’s re-election campaign.
Assistant Managing Editor, Banyan Hill Publishing
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