What will happen to the stock price in 2020
Analyzing the events that have already occurred in 2020, one can't help but wonder if the adage about troubles in a leap year isn't so far-fetched.
The global economy hasn't experienced such a severe blow in quite some time, and major stock indices have fallen as never before under the pressure of the pandemic.
Against this backdrop, most investors are wondering what to expect from the stock market in 2020—is everything really that bad?
To properly assess the situation, it's important to pay attention to how the crisis has affected each market segment.
After that, we should await the publication of financial results for the first half of the year; profit or loss reports will signal the beginning of new trends.
Passenger transportation companies – airlines, railway companies, bus companies. Don't expect good news for a long time, and therefore don't expect their stock prices to rise:
Energy production and processing companies are forecast to experience a downward trend, which will only intensify after these companies publish reports on losses.
The automotive industry is experiencing a similar situation to the previous two: new car sales have fallen by more than 50%, which will undoubtedly lead to losses in this sector.
Hotel chain stocks have fallen and will continue to fall, with some hotels closed completely, while others are practically empty.
The banking sector is experiencing a similar situation: payments have decreased, and many clients have been able to defer loan payments. Despite some recent growth, I would not buy banking stocks right now.
Now, regarding stocks that could rise in price:
Pharmaceutical companies : in March 2020, many companies in this sector lost value, but in April, the trend reversed to an upward trend, and prices are steadily rising. Therefore, we can hope that the reports will also show positive dynamics, as people are getting sick and buying medicine.
Large online retailers have significantly increased their sales during the pandemic, leading to a rise in the price of their stocks. For example, Amazon shares have risen by almost 50%.
Internet service stocks are gradually recovering after their February decline. While the decline was caused by stock market panic, the reasons for the rise are more fundamental. There's every reason to expect price growth for companies like Google and Yandex. Now is the best time to buy these stocks.
Overall, now is a pretty good time to open buy trades on promising stocks; these positions have good growth potential and allow you to make good money.
