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The top investment analyst predicts good performance of the markets this year.
S&P 500 may rise by at least 15% this year. This is what top investment analyst Simon Fentham-Fletcher thinks. He is the Chief Investment Officer of Freedom Asset Management. Simon said this when he indicated that now it’s time to take profits. He also urged caution when doing so. In an interview, he said:
“I’m actually starting to think about trimming back some of the exceptional gains we had last year and coming through into this.”
“So from my perspective, yes, I think it is time to start taking 1, 2, 3% off and … put away some cash (so) that you can come in when there’s a 5 to 10% correction,” continued he.
He went further to predict gains of up to 15% for the S&P 500 index. This prediction was made based on positive results from the U.S. corporate sector. The strong United States economy was also factored in. He also said that even if the markets don’t climb a correction was afoot. This will give smart traders and investors opportunities to invest.
S&P 500 Rise Is Driven by Deeper Factors
This indicates the kind of mindset that he has regarding the markets. Simon seems to have a natural understanding of the times we are in. The United States economy is growing. The markets aren’t rattled by global tensions. Trading opportunities abound. He also said that equities are a great idea at the moment. According to Simon, “the overall environment for equities has very strong growth impetus”.
Equities so far still remain one of the top choices for market entry. This will give rise to a boom period which may continue into next year. Simon also indicated that emerging markets will be on his to-do list this year. He predicted that they will have positive cashflows. This is because certain geopolitical factors have calmed down recently. The U.S.-China trade war is one of these.
General Market Predictions
So far, pundits have predicted generally positive outcomes this year. It seems like most are singing the same song. Others are wondering if the current market conditions are merely a bubble effect. Many believe that stock market bubbles follow similar patterns. In some cases this is true. In others, positive outlooks driven by strong fundamentals indicate real growth.
So far, the United States’ economy has been moving along nicely. It doesn’t seem to be affected by the local political tensions. Geopolitical tensions also seem to have little effect.
Increases in electronic commerce have also aided positive growth. Recent data from the end of year sales show this. Most of the corporate profits being declared currently come from the end of year sales from last year. The rise has indicated a trend in reliance on technology to save costs. This partly explains the positive figures as well.
As for what will come next? It seems that with everything that is going on a dive into the markets is fine. However, as Simon indicated, making profits is fine. It just has to be done cautiously.