Where Will Stocks Be 1 Year From Now?

1. Where Will Stocks Be 1 Year From Now? Most investors just don't like bear markets. And the truth is that we are currently making history - we are riding the longest bull market in US history. So, many investors are starting to become concerned with the possibility of a huge bear market to be on its way. Are We Heading Towards A Strong Bear Market? According to the latest financial news, we can say that a bear market is indeed on its way. We believe that it should be in place within the following 9 to 16 months. So, this means that the bear is arriving soon and you need to be prepared. But will it be that big? We completely understand investors who are afraid of living an overdue bear market just like the one at the Great Depression. Back then, the S&P 500 declined almost 60% as well as the Dow Jones And NASDAQ. However, instead of being scared, it is time to take action and protect your portfolio as you can. For Latest Stock Market News Today, visit Smart Money Gains. Why Do We Believe There Will Be A Recession In 2020? While no one can tell the future, we are making this prediction based on the latest financial news and on the stock market news & research. The truth is that there are many different models that are used by financial firms, central banks, and governments to determine the likelihood of bear

2. markets and recessions. The model that we found to be more reliable is the one based on the yield curve that was able to accurately predict 9 out of the 10 latest recessions. Looking at the data available, the 10y-3m yield curve has been falling for 8 years now. While this could have already indicated that a recession would be near, now there is an additional factor to take into consideration - the rapidly falling of the United States economic growth. Just because we are seeing all the signals for a bear market in 2010, this doesn't imply that it will be similar to the Financial Crisis. The reality is that the United States now has an improved legislation and regulation as well as banks are much better capitalized. According to Warren Buffett, “The banks will not get this country in trouble, I guarantee it. The capital ratios are huge, the excesses on the asset side have been largely cleared out. Our banking system is in the best shape in recent memory.” For Latest Business News, visit Smart Money Gains. It is important to remember that even mild recessions can have a huge impact on your portfolio. Just take the 2001 recession, for example. While it was

3. considered mild, the reality is that the NASDAQ fell 80% at its peak and even the S&P500 was cut in half. Overall, all bear markets are different. Even though you can look at the average numbers, ultimately, what matters is the valuations stocks reach and the fundamentals of the economy itself. Most Analysts Are Pessimist While most stock analysts are becoming more bearish every day, the reality is that we believe that we should see an average decline between 20 to 25% on stocks. According to our stock market research, the Fed tends to cut the Fed Funds rate around 5% during recessions. However, and up until now, it only has 2.5% to cut before hitting zero.