For many reasons, in the past two or three quarters, most people have not paid attention to the financial world, while investors and analysts who are aware of the strong bull market in 2020 are not. And, as usual, predictions are universal. December, in an economic downturn, the financial sector cannot maintain peace and prosperity for a long time. In fact, as shown below, the challenges and opportunities in 2021 are based on the phenomena and strategies launched in 2020.
The future is far less certain than some analysts believe. It is worth summarizing the expectations for the next few months. The main challenges are: 1) a bad credit boom, and 2) a possible rise in inflation. The continuation of the bull market is a risk and may bring opportunities for harvest.
As mentioned earlier, 2020 is an incredibly positive year for the global stock market. In addition, this year all analysts seem to be repeating this mantra. In the past year, the phrase “the stock market is not an economy” has been heard thousands of times. Criticism comes from both sides of the ideological realm.
However, due to marginal developments such as marginal trade, 2020 will end in a positive manner. With the help of these “gambling” investment platforms, people who stay at home after the transaction can use the exchange and make a profit. It spread outside the United States and reached India. However, the delete operation does not work. A Nobel Prize winner pointed out that “optimism about Apple’s future earnings this month will not bring rental income.”
When stocks grow, the real economy suffers and the middle class falls into poverty. Despite the controversy, stock exchanges seem to show strong growth and performance in 2020.There are two reasons for this situation: the economic recession hurts small unlisted companies more than large listed companies, which is part of the facts. The other is the lack of returns provided by bonds. First, the policies of the government and the central bank should continue to support economic activity.
Despite the OECD’s recommendations, this is unlikely. Second, inflation must remain an unattainable dream or nightmare. Drive company finances. In the words of professional runners, “bubble can survive the longest time in late spring or early summer.”