Beyond Wall Street: 2019 Global Stock Market Outlook
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You hear it a lot lately: “The economy has been too good to us, it’s reaching its peak faster than a con man running for his getaway car.” There is some truth to it. America is in it’s longest continuous growth cycle since 1860.
But this doesn’t mean there’s nowhere to go but down. The negative stock market outlook for this year stems more from what we’ve seen in the past than what the future holds. Full employment, rising prices, and higher interest rates have always warned us of recessions in the past.
Global Stock Market Outlook 2019
International stocks are one of the most unpredictable asset classes during uncertainty. When global stock markets begin to question themselves, assets in emerging markets suffer from increased volatility before sliding into a bear market.
But the outlook for international stocks in the long term is much better. Both stocks and bonds from emerging markets are much cheaper than anything you could find in the U.S. Investment-grade corporate U.S. bonds are some of the most overvalued assets during peak economic times.
The international stock outlook for the long term have more growth potential than the U.S. We should also see a cooling off of the American Dollar due to the four interest rate spikes in 2018. It wouldn’t be unusual if the European Central Bank raises interest rates after going easy on them for so long.
This could affect the stock market outlook of global stocks in a negative way because higher interest means less spending and more saving. But there is good news for Americans. They may only see two interest rate hikes in 2019, not the expected three.
The Question of International Trade
A lot of the hesitation about what 2019 will look like for the stock market are trade relations between the U.S. and China. Don’t be surprised at the volatility following the news cycle around this hot topic.
The first quarter of 2019 should be positive, with the S&P gaining over 10 points, but settling into a solid bear market once fears of a recession begin to shake the mainstream media. If you’ve been considering taking out a mortgage, it may be time to act before interest rates head for the stars.
What to Expect
Popsockets isn’t the only company the future is looking bright for. Canopy Growth (CGC) is a public company you can buy stock in today. It bills itself as “the world’s largest cannabis producer” and is expanding into new markets at a rapid pace.
So the stock market outlook for 2019 might see some downtrends. But there are many growing companies which will continue to see their market shares grow as they dominate the market. Find out more about how to make money off stocks now with this article.