Outlook for Stock Market in 2020: New Year to dawn in a Majestic Bull Market

The year 2019 surprised market participants and investors alike by its sheer strength and resilience. Despite the hue and cry on slowing GDP growth, stress in the financial sector, agrarian crisis and rising unemployment; markets are closing the year with a gain of nearly 15 percent on the frontline indices.

The popular reaction to this market buoyancy is that of dismissal and disbelief. Many believe that the market is behaving irrationally and not representing the harsh economic realities. While I appreciate the scepticism and the reasons behind it, I strongly believe that market signals should never be ignored. Representing collective intelligence, markets usually are ahead of any investor or groups of investors in identifying trends. Though over short periods of time markets move on speculation and can disseminate completely wrong signals, on a longer-term, market movements are related to corporate profitability growth. One year is a fairly long period and though markets are not infallible and can stay irrational longer than expected, yet to dismiss a year-long trend as a mere blip would be certainly unwise. I for one firmly believe that this uptrend in the markets is here to stay. I innumerate here several reasons for my bullish stance.

Disclaimer: This is the author’s personal view. Readers are advised to consult their financial planner before making any investment. 

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