2019 may be the year of investments - January 13, 2019

2019 may be the year of investments

This might be the year for investments as more and more analysts expect the markets to turn upwards soon. Although 2018 wasn’t especially kind for the markets, a turn is also expected by us. Blackstone, biggest alternative investment firm’s strategist goes as far as envisioning a 15% surge on the stock market in 2019. That would make this year a great time to (re)invest!

The leading strategist at Blackstone, the biggest alternative investment firm expects a 15% surge on the stock markets this year. Our analysis also led us to believe that this year may bring an upward change on the markets. What does this mean for investors?

“This is a buying opportunity.”

"This is a buying opportunity. We see the market, the S&P 500, up 15 percent in 2019", said Joseph Zidle, Blackstone’s investment strategist to CNBC about his sentiments of the markets. He also said that the market’s wild swings were because of the negative sentiment, but"This is just not a recessionary environment".

This means in his eyes that prices shouldn’t be this low and they will probably go higher soon. Therefore, Zidle’s advice for the Blackstone clients was to put their money to work. He was especially attentive for “cyclical groups such as materials, industrials, technology and energy”. These instruments took some hits lately, but they have strong bases.

We also expect a turn soon

Generally, swings like these represent a great opportunity to enter the market or to reinvest. In the upcoming months we may see some more market movements, but that is seen as something positive by many. Why? Because many investors use these to (re)buy stocks. The reason is simple: professionals try to buy instruments when their prices are low and sell them when they go higher.

This means that now is a great chance to do the former and enter the market. Especially as of the end of 2019 prices may start to go back up. We expect the markets to go even higher in 2020 and 2021, maybe even hitting record highs during those years. This means that buying or rebuying stocks should be done now, while waiting too much would mean a missed opportunity.

What not to do?

The worst thing to do now is selling instruments. We already wrote about how patience might be the key in several situations. Still, many individual investors sell low and then reenter the market when everyone else is optimistic. This means they buy high, which, at the end of the day, hurts them a great deal.

Since this is a rather important topic, in the upcoming weeks we are going to explain (through numbers and data) how individual investors lose money with this behavior.

Disclaimer: This analysis is for general information and is not a recommendation to sell or buy any instrument. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. Innovative Securities’ Profit Max has a diversified portfolio, which contains liquid instruments. This way, our clients can maintain liquidity, while achieving their personal investment goals on the long term.