What will happen to the stock price in 2020
Analyzing the events that have already happened in 2020, you inevitably begin to think that the statement about troubles in a leap year is not so meaningless.
The world economy has not experienced such a strong blow for quite some time; the main stock indices, under the pressure of the pandemic, fell like never before.
Against the backdrop of all this, most investors are interested in the question of what to expect from the stock market in 2020, is everything so sad?
In order to correctly assess the situation, you need to pay attention to how the crisis affected a particular market segment.
After this, you should wait for the publication of financial results for the first half of the year; it is the profit or loss reports that will be the signal for the beginning of new trends.
Passenger transportation companies – airlines, railway companies, bus transportation. Here you should not wait for good news for a long time, and therefore hope that their shares will rise in price:
Related to the extraction and processing of energy resources - a downward trend is predicted, which will only intensify after these companies publish reports on losses received.
Automotive industry - a situation similar to the previous two, sales of new cars fell by more than 50%, and this will definitely lead to losses in this industry.
Shares of chain hotels have fallen and will continue to fall, some hotels are closed completely, others are standing with virtually no guests.
The banking sector suffered a similar situation, payments were reduced, and many clients were able to defer loan payments.
Despite some recent growth, I would not buy shares of companies in the banking sector now. And now about those shares that may rise in price
Pharmaceutical companies - in March 2020, many companies from this industry lost their value, in April the trend changed to an upward one, the price is steadily growing.
Therefore, we can hope that the reports will show positive dynamics, because people get sick and buy medicine. Large online stores have significantly increased their sales during the pandemic, which has led to an increase in the price of their securities; for example, Amazon shares have risen in price by almost 50%:
Shares of Internet services are gradually beginning to regain their positions after falling in February. And if the fall was caused by panic on the stock exchanges, then the reasons for the growth are more fundamental. There is every reason to hope for an increase in the prices of companies such as Google or Yandex. Now is the best time to buy these securities.
In general, now is not a bad time to open purchase transactions on promising shares; these positions have good growth potential and allow you to make good money.