How The Stock Market Shapes Up For 2016
In terms of investment opportunities, the stock market generates a lot of volume. The NASDAQ delivers between 60 and 100 billion dollars in high earnings. But in reality the gains can be offset by big time losses. For the last ten years the NASDAQ composite has delivered a 139.93 percent return on investment acccording to SEC. The S&P 500 has a 75.4 return over the last five years.
So what are the prospects for the stock market in the year 2016? Investment guru Jeremy Grantham predicts on PR Newswire a down turn around the time of the presidential election, which is typical. It could be a disaster for those who have a lot of money invested. Other experts see a valuation loss in the energy sector. Analysts do say there is a possibility of a bounce back toward the end of the year. Cable television may be another problem area, with streaming companies cutting into their subscriber base.
A key market indicator is interest rates. Many predict the fed will raise rates in the near future, which always causes the market to reanalyze.
Stocks should be a part of your portfolio, but you should be advised of the wild swings that take place due to things like elections, issues, terrorism, and changing monetary policy. The best advice for 2016 is to be cautious and maintain a diversified portfolio.
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