Many analysts say that the stock market will soar to great heights by the end of the year.
However, gains are most likely to be average due to slugging of the economic growth and corporate earnings.
Ryan Detrick who is a market strategist said that it’s going to be difficult for the stock market to surge quickly. However, he added that he expects a good increase which will enable the market to be good for investors to invest their money in. Below are reasons stock could bring health gain throughout the year.
The US economy is taking a toll, but it is still sturdy. In February employers added almost 20,000 jobs The average job gain is said to slow by about 165,000. Low employment makes it difficult for employers to find new workers. The average annual wage will be pushed. The average yearly wage was at 3% since the last half of 2018.
Stocks Are Still a Good Investment
Currently, a ten-year treasury bond is yielding almost 2.4%. Stocks are still the recommended investment as they are promising and they generate more money enabling the investor and the country to gain more.
Slug in the Global Economy
The global economy is slowing down especially in countries such as China and Europe. About 500 companies get 40% of their revenues from sales which they make overseas. Meanwhile, if a British state withdraws from the European Union which does not involve a trade deal could end up reducing stocks.