- What is our market prediction for 2020? So far we saw melt-up of the market
- Looking back, 2019 has been a year of protests around the world.
The wealth gap between haves and have-nots is rising to a breaking point.
One of the reasons that the increase in the wealth gap is the policy of banks. Central Banks have been easing by artificially lower the cost of borrowing and negative interest rates ( other than the United States).
There was no such thing as “negative interest rates” in history. In economic classes, didn’t you learn to calculate the time value of money PV, FV of money, etc.?
The Fed has been injecting 60-100 billion each month from mid-September 2019, and the S&P 500 has been going higher.
New York Fed explained back in October the Fed’s “NOT QE” will continue “at least into the second quarter of next year.”
Now in 2020, while the Feds inject tens of billions, the market could go even higher?Ā
According to Morgan Stanley, in the year’s final report by the bank’s cross-asset expert Andrew Sheets, he writes that the bank’s interest rate strategists “expect the Fed to expand its balance sheet through April/May.”
Another point of view is 2020 is an election year. There are lots of reasons to keep a healthy market level to be re-elected. But who knows if the market can sustain without fed supports. The overall sentiment is the market going higher in 2020.
Blockchain technologies are being introduced in many countries and corporations for preparation for the newer system. (linkĀ https://www.ibm.com/blockchain)
We might see the change of the financial system if the US finally enters the negative interest rates, which shows the current economic system is not working? What is your opinion of the market in 2020?
