Summary of Trading 2019
Projections by PWC regarding the economic outlook in the United Kingdom towards the end of 2019 was grim. The Outlook was based on the growth rate predictions of the economy, which stood at 1.2% for the last part of 2019. This was well below the long-term average for the region which stood at 2%. It is worth noting that the 1.2% was dependent on whether Brexit would be orderly or disorderly with the latter giving rise to an even lower figure. According to the Bank of England, Brexit also resulted in slowed growth of the GDP. The Brexit-related uncertainties led PWC to quote 1% as the 2020 prediction.
Further, the International Monetary Fund, noted that as a result of weakness in manufacturing and trade, the economy of the larger Europe had slowed. Notably, Europe’s economy is anchored by Germany, the largest economy in the region. However, Germany has been struggling, thereby affecting the entire EU. As a result of these factors, the IMF’s projections for 2019 were that Europe’s growth would drop from 2.3% in 2018 to 1.4%. Europe’s economic and financial growth predictions for 2020 are that the economy would recover and the growth would stand at 1.8%.
Top 5 Hottest 2020 Prediction
Global Economy Predictions Of Trading 2020The United States remains the biggest economy in the world, closely followed by China. The global economy is, therefore, affected by the situations in both of these countries. In 2019, China and the United States were embroiled in a trade dispute that increased uncertainty revolving around global trade and international integration. These wars negatively impacted investment decisions, trade, and business confidence. The result was a sluggish global economy. Also, because of the same, the Chinese economic growth has been slowing down. However, for 2020, the outlook is positive since the US-China trade war is nearing a resolution. This development is bound to boost confidence and revitalize manufacturing and production. The IMF projects that the global economy will grow by 3.5% in 2020 up from the 3.2% forecasted for 2019.
Chinese Economy Predictions Of Trading 2020
It is noteworthy that the Chinese economic growth has never gone below 6% since 1990. The 2020 predictions, however, paint a grim picture. This trend will change with the growth rate expected to be 5.7% in 2020 and will slip further to 5.6% in 2021. This drop is not as a result of the trade war but has been due to factors such as a decline in productivity and an aging population.
US Economy Predictions Of Trading 2020It is worth noting that the policies by central banks influence the economies of their respective countries. Some of these policies are captured in the interest rate predictions. In 2020, the US Federal Reserve is likely to increase the interest rates and will only do the contrary if the economy slows down. As such, the US’s financial forecast is positive and fiscal stimulus programs are likely not to be implemented. The USA is unlikely to fall into a recession. This is based on the prediction that the US economy will grow by 2.1% in 2020. Nonetheless, the same cannot be said for Germany which is edging into an economic depression. In the world economy, chances of there being an economic crash in 2020 are minimal thanks to the fact that manufacturing is projected to bounce back thereby fuelling other economic activities such as trade.
Financial Markets Predictions Of Trading 2020Investors in the stock markets are likely to earn less than they did in 2019 over the next 12 months. Their returns which in the previous year were in double digits, will be hard to replicate. For instance, in 2019, the equity markets in the united states grew by between 25% and 30%. The main reasons attributed to this phenomenon include the trade war highlighted above, political upheavals and other reasons. Also, major companies posted their highest performance in the form of revenue and profits in a decade, a phenomenon that will be hard to repeat. 2020 will be a low-risk year for investors. Additionally, in other financial markets such as the bond markets, analysts project that there will be very low returns. Nonetheless, the assets that are considered risky, namely corporate bonds, commodities produced by industries, equities, and real estate investment trust (REIT), will be more than those which are considered safe. Safe assets include bonds issued by the government and precious metals such as gold. It is noteworthy that comparable to 2019, the returns for both types of assets will be weaker. In the forex market, the US dollar is projected to reduce in value marginally over the next 12 months. Analysts note that the weakening will be due to cautious optimism. For traders, trading in the Canadian dollar will be more advisable than relying on the Australian dollar. Also, the Japanese yen should be preferred by traders to the Swiss franc.
Cryptocurrency Market Predictions Of Trading 20202020 will herald a period that will define the future of blockchain technology and cryptocurrencies. Bitcoin is the premier crypto which brought forth an integration of peer-to-peer networking, cryptography, the use of correlational algorithms, among others. The rise of Bitcoin brought forth the era of digital currencies, but its limited nature as a currency makes its usage only singular. Comparatively, Ethereum, a crypto, has infinite uses and is projected to digitize the global economy. Through the use of the Ethereum platform and technology, it will be possible to represent various aspects of the economy and financial setup digitally. These include gold, debt, equity, fiat currencies, and software licenses among others.
Analysis of 2019 Financial Presentation
In August 2019, Carl Icahn, one of the richest traders in the USA, stated that he alongside other traders were facing many problems. He attributed this to the fact that the interest rates were low and the cash flow into the index funds posed a danger to the market. He also noted that there was a need for the resolution of the China-USA trade dispute which would consequently spur growth. The challenges in the market were also felt by Warren Buffet’s Berkshire Hathaway, whose shares only gained a marginal 11% compared to the S&P 500’s growth of 29%. As such, Berkshire, whose main operation is the purchase of stocks in promising companies according to Warren’s directions, underperformed. Billionaire trader Ray Dalio noted that the central banks’ low-interest rates were responsible for the slow growth of the economy in 2019. He noted that because of the low-interest rates, investors had access to large amounts of money. The result was a surplus in the cash flow. Such investors often directed their money to unprofitable establishments which could not contribute in any way to the growth of the economy.
Statistics for 2019
In November, the elections contributed to the 0.3% drop in the GDP. Evidently from the table shown below, 2019 presented mixed fortunes for the country with some months experiencing an increase while other months came with a decline in the GDP. According to analysts, the drop in vehicle production had slowed down manufacturing mainly as a result of the uncertainties of Brexit.
Money and Financial Predictions for Men and Women in 2020
The financial environment has seen a tremendous change with regards to being accommodating to women. The progress signals an even playing field for both men and women in 2020, a phenomenon that was not fathomable in yesteryears.