In this article we give an overview of 10 market forecasts for 2020 which we wrote as part of our annual series of market forecasts. Note that we only look into global stock markets and commodities. We exclude cryptocurrencies and currencies in this article even though we cover both in our annual forecasts.
We classify our 10 market forecasts in 4 categories from bullish to bearish.
Bullish 2020 Market Forecasts
Global stocks will be bullish in 2020, is what our market forecasts learn. We wrote a bullish forecast for U.S. stock markets (represented by the Dow Jones) as well as the Australian stock market.
The Dow Jones Forecast For 2020 And 2021 is 32,000 Points, which is a strongly bullish forecast.
Our Dow Jones forecast is strongly bullish for 2020 as well as 2021. A first price target of 32,000 points in 2020. Both the Dow as well as global stocks will be bullish. However, prepare for a #marketcrash in 2022. Enjoy till then!
Which sectors are to buy for 2020? Our answer is in this piece 6 Best Sectors for Investing on 2020. This applies to U.S. stock markets specifically.
So as long as this trend continues which is what we expect given everything we outlined before we should see a 20% rise in 2020 and another 20% in 2021. However, the index is now at the top of the channel, not at the mid point, so we have to adjust for this. That’s why we believe a fair forecast is for the Australian stock market to rise 20% (base case) to 30% (bullish case) in 2020 going into 2021. This assumes there will be a correction along the way, and we suggest to buy the dip.
In other words we expect Australia’s stock market (represented by the ASX index) to rise 20% in 2020, with a buy the dip in the ASX index flashed earlier today.
Mildly Bullish 2020 Market Forecasts
In the category ‘mildly bullish’ we have all precious metals forecasts.
Our Gold Price Forecast For 2020 And 2021 learns that gold being the leading indicator broke out to a new bull market. We expect this bull market to lead the way higher for silver and platinum. However, this bull market will start slowly and accelerate. Our first gold price target is $1,750, a peak which we expect to take place in 2020.
Our Silver Price Forecast For 2020 And 2021 says that silver will rise mildly in 2020 to peak around $22. However, in 2021 and beyond silver is expected to accelerate its pace.
Our Platinum Price Forecast For 2020 And 2021 is mildly bullish in 2020 but wildly bullish in 2021. The chart set up of platinum is exceptional, and points to a giant breakout somewhere in the next 24 months presumably in 2021 (subject to revision though).
Outside the precious metals space we expect emerging markets to be mildly bullish in 2020. As per our Emerging Markets Outlook for 2020 and 2021 we see the continuation of the bull market in emerging markets with the EEM ETF rising to above 45 points in 2020. We expect an acceleration going into 2021.
Elsewhere in the commodities space we expect a peak in the price of coffee but not a sustainable bull market. Read more in our Coffee Price Forecast for 2020 and 2021.
Neutral 2020 Market Forecasts
We have one neutral forecast for 2020. As detailed in our Sugar Price Forecast for 2020 and 2021 we believe sugar may go up and down, but essentially it is expected to go ‘nowhere’ in 2020.
Mildly Bearish 2020 Market Forecasts
Lastly, there is only one mildly bearish forecast we have written so far. As per our Copper Price Forecast for 2020 and 2021 we expect copper to be neutral at best and mildly bearish at worst. This forecast invalidates if and when the Euro becomes very bullish.
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