20 Predictions for the Stock Market in 2020

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This week, we continue to ring in the New Year with a variety of 2020 visions. We're hauling out the ol' crystal ball to figure out what the year ahead might hold for your investments. Plus, five stocks to help you (or a friend or loved one) get a solid start on investing, and our best simple tips to make smarter choices with your money this year.
— Nathan Alderman, Stock Up Editor

20 Predictions for the Stock Market in 2020


Alas, our psychic powers are sadly nonexistent. If we could predict the future, we'd easily surpass our fairly impressive investing track record. But we can sift through today's clues to make our best guesses about what tomorrow might bring for the stock market. Fool Sean Williams has made 20 such informed hypotheses, and we've got three to get you started:

  1. A recession-free 2020: Typically, long-term bonds carry higher interest rates than short-term ones since investors expect financial gains to keep accumulating into the future. When the opposite happens — an inverted yield curve — it can signal economic trouble ahead. The yield curve inverted last August, but even if that does portend a recession, it may not be right around the bend. Historical data suggests that market drops and recessions tend to hit about 18 and 22 months, respectively, after such inversions. Even if a storm's coming, we could still make it through the rest of the year in sunny shape economically.
  2. Another good year for the stock market: 2019 far exceeded expectations for robust stock performance, but the good times might not be over yet. Since 1981, the S&P 500 has finished the year up more than 20% 11 times. Only once did it drop the following year; in most cases, the S&P rose by double-digits again the year after.
  3. A 10% correction awaits: That said, the S&P tends to endure a 10% or greater plunge roughly one out of every two years. With plenty of global economic uncertainty remaining, don't be surprised if 2020 brings a similar drop. If and when one does come, just think of it as a surprise limited-time sale on your favorite companies.

For 17 more of our best guesses about what awaits investors in 2020, read the rest.


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Watch: The Best Stocks to Buy for 2020


The Best Stocks For 2020

As we mentioned above, 2019 was a great year for the market. Our team was happy to see their picks do well, but they also have some new companies they think could break out in 2020.


5 Stocks to Start Investing in 2020

Maybe you're reading this at the very beginning of your investing journey. Or maybe your portfolio's cruising along nicely, but you'd like to give a friend or loved one a nudge toward long-term financial security. Either way, we can help.

We've rounded up five easy-to-grasp companies, from the well-known to the fairly obscure, whose businesses and shares offer bright prospects for years to come:

  • A tech stalwart that combines surging growth with a solid dividend
  • A restaurant chain in the midst of a strong comeback
  • A streaming service enjoying global success
  • A no-hassle fitness company that focuses on treating people right
  • A recession-resistant retailer with a new take on groceries

These companies won't require endless reading or one of those giant, equation-filled chalkboards to understand, and together, they could become a strong foundation for a promising portfolio. To learn more about them, read the rest.


Smart Speaker

Not sure what to ask your smart speaker? Keep up with what's happening in the market by adding our daily flash briefing to your home assistant. Just look for The Motley Fool on your Amazon Alexa or Google Home app, click subscribe, and then you're good to go.


5 Tips for Good Financial Habits in 2020

Whether you're a veteran investor or a bright-eyed newcomer, we're sorry to say that all of us still make money mistakes now and then. In this case, the bad news and the good news mirror each other: Small changes in behavior make a big difference over time. Yes, those frivolous daily or weekly purchases can combine to make a big dent in your bank account. But to turn things around, you don't need to make massive, sweeping changes. Even small tweaks to your spending now can add up to large rewards later.

We've found five incredibly simple ideas that anyone, at any age, in any financial situation can use to get smarter about saving and spending. Adopting even one of them can leave your finances in better shape. Implementing all five could help make 2020 the beginning of a better, brighter future for you and your money.

Get started getting richer when you read the rest.


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The Motley Fool's VP of People Insights, Kara Chambers, joins us to talk about what makes us feel fulfilled at work and shares hacks to improve your job situation in 2020. (And hey, it just so happens that we're hiring!)

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