How Market Will Perform in 2020
Now, when we are entering in New Year 2020,
One big question is in everybody’s mind “What will happen to Stock Market in 2020” or “How Market Will Perform in 2020”
In this article, we will share few interesting points to give insight about what can happen to market in Year 2020. We will discuss points & events which can go in favour of Stock Market and those which can go against.
First let’s discuss points & events in favour of Stock Market
- Upcoming Budget can have some big announcement to boost economy.
- Benefit of Stable Govt for Next 5 Years (less 6 months)
- Recent Corporate Tax Cut will boost future earnings
- Auto & Metal Sector may revive in next 1 to 2 years. So, recovery in Auto and Metal stocks in 2020 is on cards.
- Even when Nifty is at 12000, few stocks are still very attractive and promising. So, correction in market will be taken as an opportunity to enter at lower levels. No doubt Nifty will try to jump above 13200 levels in Year 2020.
Conclusion: Follow Stock specific approach and accumulate quality stocks in every correction.
Points which can go against Stock Market
- GDP at 6 Years low 4.5% may go worse from here.
- Big Event of US Presidency Election in Year 2020 can bring high volatility in Global Market
- Global Market is already at all-time high, big correction can come any time as greed is at all-time high. Stock Market Crash comes when nobody is talking about it.
- NBFCs issues (Scam and Liquidity) are not over yet. This is a big threat to Indian Banking System and any new unfavourable event can lead to heavy correction in Stock Market
- US Market is in bull run since 2009, Heavy correction is still due.
Conclusion: Stay Alert, Don’t remain heavily invested in market and keep some cash ready.
Disclaimer: View discussed are based on personal experience of author. Please consult your financial adviser before taking any investment decision.