Category: Stock Market

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What we think the stock market will do in the upcoming month

Is the Stock Market going to crash?

The most debated question on the stock market now is- Where is what direction is the stock market going to go in the upcoming months. Some are saying it is going to go down 30% and others are saying it’s going to be gradual growth.

We believe that the stock market will not crash again and we also don’t think it’s going to shoot back up. The market will most likely go through a few more small declines but not drop more than 10%. It also should slowly go back up to where we were at the end of last year.

Although the market as a whole shouldn’t crash, some individual stocks may. Many small businesses are going out of business and some big businesses are as well. Their stock price will reflect these loses and will drop fast.

Why we think this,

First of all the stock market doesn’t always represent how our economy is doing because it is always looking forward. Other countries are re-opening and doing fine, meaning we should be able to re-open in the near future. Also we are printing more money and helping out businesses; this helps in two ways: people are still able to buy things and more companies will be able make it out of this recession.

Another good thing is that business is moving more and more online and it shows because some companies are making more money now than they did before COVID19. People are also able to work from and start online businesses, so if COVID19 lasts longer than we think a lot of business will be able to continue making money.

Lastly, the U.S. makes up nearly a quarter of global GDP. “Generally speaking, the US economy is better-positioned to recover from large shocks and potential longer-run shifts than much of the rest of the world. The population is on average younger than much of the rest of the world with more mobility, and labour market restrictions are generally lighter, thereby facilitating greater labour reallocation” said Eric Sims, professor of economics at the University of Notre Dame.

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Reviews Stock Market

Top 3 Books about The Stock Market

One of the best ways to begin learning about the stock market is reading about it. I am going to share my favorite books that helped me learn the most about trading.

1. The Intelligent Investor by: Benjamin Graham

This is the most well know book about investing and is Warren Buffett’s favorite. It is a 591 page book that covers everything you need to know about investing.

It’s on sale now!

2. One Up on Wall Street by: Peter Lynch

Peter Lynch has consistently doubled the return of the S&P 500 for more than 10 years and managed the world’s best-performing mutual fund. He has found ways to find great investment opportunities before other analysts discovered them. In the book he talks about advantages that average investors have over professionals and how regular people can use these advantages to achieve financial success.

3. Market Wizards by: Jack D. Schwager

The book includes insight from the world’s top traders who share their secrets of success with author Jack D. Schwager. It is an interview-style book with many successful investors across most financial markets, including Bruce Kovner, Richard Dennis, Paul Tudor Jones, and more.

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Stock Market

Coronavirus Market: Why The Market Is Dropping

The stock market crash of 2020 began on Monday, March 9, with histories largest point plunge for the Dow Jones Industrial Average (DJIA) up to that date. It was followed by two more record-setting point drops on March 12 and March 16. The stock market crash included the three worst point drops in U.S. history.

The market started to rebound on March 24 but then fell again on April 1 due to the continuous impact that the coronavirus is having on companies. Coronavirus has led to our economy losing 700,000 jobs in March alone. This hurts the economy in 3 ways: 1. Employees can’t go to work and the companies obviously, need their employees to produce goods and to provide services; 2. Some workers lose their source of income and this affects the economy because they can no longer buy as many products and services; 3. The government is sending money to workers who have lost their job making the US go into more debt.

Since companies aren’t making as much money, their value drops leading to their stock price dropping. Not only are companies’ sales down, they also are losing money from their shares in the market. This beats a company while it is already down, causing a rapid downward spiral.

The good news is that the value of the dollar hasn’t gone down and the government and citizens has been taking action trying to slow it down and we should have a good end to 2020 in the market.