Early Predictions of 2021 Stock Market (Forecast and Analysis)

Without a doubt, the coronavirus pandemic has impacted everyone. This has created a massive public health crisis that has led to an economic crisis as well. Even though the United States’ job market is still not looking that great, with numerous people still unemployed, the stock market has continued to defy all expectations. Somehow, the stock market has continued to rise after a very brief blip back at the beginning of the pandemic. Therefore, there are many analysts who are still confused. As a result, those who are wondering what the stock market is going to do next year have a number of important points to keep in mind. What are a few of the most important predictions to note for this coming year? 

Crisis in the stock market

Is a Stock Market Crash on the Way?

First, there are many people who are predicting that a stock market crash is on the way. Due to some tricky spending and maneuvering on behalf of the government, the stock market has been propped up by the Federal Reserve, according to many analysts. At the same time, the Federal Reserve is not going to be able to keep the stock market propped up forever. In 2008, the stock market crashed was preceded by a housing market crash. Given the record low mortgage interest rates and a continued lack of Interest in the current housing supply, there are some people who are concerned that a housing market crash is on the horizon. This could result in a stock market crash as well. 

Is the Outcome of the United States Presidential Election Going To Impact the Stock Market?

Next, it is important to think about the upcoming presidential election as well. Right now, there is a lot of uncertainty that is currently built into the stock market. A lot of this uncertainty is going to clear up after the election has been completed. Even though the Republican party is typically associated with the success of big business, this does not necessarily mean that a Republican victory is going to lead to improve stock market performance. When looking at the past results of presidential elections, the stock market has boomed under the prior to Democratic presidents, Barack Obama and Bill Clinton. Therefore, a Joe Biden Victory could very well propel the stock market further. 

Is a Vaccine on the Horizon?

stock photo

Finally, is also important to talk about the impact of the vaccine on the potential stock market. Without a doubt, a public health crisis has created that you cannot at prices that many Americans are not feeling. Therefore, it is important to think about how the potential of a vaccine in 2021 could impact the stock market. If a vaccine is not developed until later in 2021, this could delay an economic recovery in the United States, and packing the stock market. Therefore, it is important for everyone who is interested in investing in the stock market should keep their eyes on the signals regarding potential vaccine development. If a vaccine is deployed early, this could lead to economic recovery.

The Future of the Stock Market is Uncertain

Without a doubt, the 2021 stock market is very much up in the air. It is very hard to predict what is going to happen with the presidential election and a public health crisis still raging. Once the presidential election has been completed, the stock market is going to react accordingly, setting the stage for 2021 and beyond. It will be interesting to see what happens at the end of 2020 and the beginning of 2021. 

The following two tabs change content below.