Stock Forecast Next 3 Months, Why The Market Will Recover Fully, But Probably Not for 2+ Years
Finding a Stock Forecast for the Next 3 months that is accurate is definitely no easy task, but you did Google search “stock forecast next 3 months,” for a reason, and on that note, today and in this blog post, I am going to give you the full run down of what I think about the stock market over the next 3 months, why I think what we are in is just a bear market bounce, and why we will have another drop, and of how I think the stock market will fare over the next several months. It’s very important to understand in the field of finance, that no matter how much money someone has, or how much experience they have in the world of investing, short of telling you to diversify and to make sure that you keep some of your assets in cash as an emergency fund, no one knows what the market will do in the future, and don’t let anyone tell you differently. With all that being said and without further ado, lets look at how I think the stock market will fare over the next 3 months, 2 years and 3 years, of why I think this is likely to happen, and of why it would be good to own some defensive stocks and Certificates of Deposit in the year 2020. For more information, be sure to subscribe to our blog for additional details and information, and to comment down below with your thoughts, and we’ll get back to you within one business day with a response.
Why I Think The Market Will Fall Significantly Over The Next 3 Months, With a Slow and Gradual Recovery During The Rest of 2020
So, lets look at what happened over the past 30 to 60 days or so as evidence for my future stock market crash prediction. So I know that past results do not predict future performance, etc. etc, but just hear me out. 30 days ago, the stock market gradually fell from its greatest high ever, of around 29,550 for the Dow Average, to its bottom, at around 18,300 points, a nearly unprecedented, 40% market drop inside of 1 month. From there, over the next 30 days or so, we have seen a very gradual market increase back up to the 24,000 or so level that we were at before.
At least in the United States, but most likely for the global market, I do not see this market continuing to gain pace, especially with the second quarter earnings reports looming in the wake, and a GDP growth number that is very likely to show a 30% CONTRACTION, and a looming recession, I think that we may actually see our worst stock market bottom yet. If I had to guess, by the time the second quarter GDP numbers come out, especially as the United States and the rest of the world seem to be re-opening extremely slowly and at a very low capacity over the next several months or so, that we could see a potential stock market bottom of 14,000 or even lower. At the very least, there will be huge market panic as the COVID-19 situation continues to get drawn out, and when the second quarter GDP numbers come out on August 31, we are very likely to see a 30% contraction in the economy, triggering what will then become a full-blown, on paper recession, and causing yet another stock market crash. Keep some of your assets in cash, hold through the dip, and fasten your seat belts, because it is going to be a bumpy ride. To close out this section of the blog post, I am predicting that by September 7th, 2020, we will be looking at likely a Dow Average of below 17,000, and I want it on record that I guessed it correct!
Why I Don’t Think The Dow Will Hit 30,000 Until 2022, and Why I Feel I am Very Much Justified In This Prediction
From such a large contraction, this thing will start to really spiral out of control, with only marginal GDP improvements from there. While I don’t believe that the US economy is necessarily headed for a depression, which is 6 consecutive quarters of negative GDP growth, I think that we will hit the second place slot, and as the Coronavirus situation gets worse and worse, will likely see the worst Recession in recent history, and a recession that makes 2008 look like a slap on the wrist.
Final Thoughts on My Stock Forecast Next 3 Months, and Why My Predictions May Unfortunately, Come True
Where do you think the stock market will be in the next 3 months? Do you think my forecast is wrong, or do you think it just goes a little bit too far? As a whole, I think that unfortunately I am right, which is a shame in that it means I will likely lose over $100,000 from my current investment portfolio (is it time to buy put options yet?), but I just cannot see the stock market rising, and I don’t see it flat lining over the next 3 months or so, therefore I think it will fall significantly, even though how much is anyone’s guess! Expect to see short interest and short positions start to fill up over the next several weeks though, that much I can tell you. Have a different opinion? Leave a comment down below, and be sure to subscribe for daily article updates!
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