No one can predict the future. And the past is never an indicator of what could happen months, weeks, or even days later.
So then how did our readers make 207% on Zoom Video Communications Inc. (NASDAQ: ZM) after our own Bill Patalon recommended it in May 2020?
What about the 949% profit since we recommended Workhorse Group Inc. (NASDAQ: WKHS) in January 2020?
How does anyone succeed in making these so-called "stock market predictions"?
It's not so black and white.
There are things to know about stock performance that can give you an idea of what a stock will do in the future. The more information you have, the better your idea.
That is somewhat different from having a clear crystal ball. But it's the next best thing.
Money Morning wants to cut through the grey area and give you rock-solid analysis that will help prepare you for any ups or downs in the market.
Our team has about 150 years of collective investing experience ranging from Silicon Valley to options and technical trading.
Here are some new predictions we see on the horizon.
The year has already started with a bang. We saw GameStop rocket 2,229% to $300 and slide back down. This caused some friction in the fintech world.
Robinhood and other brokers halted trading on some stocks to meet the capital requirements of their clearing houses. Bad optics forced Robinhood to shelf its 2021 IPO plans.
Though Robinhood may be stifled for a while, one fintech trend is not going away. According to Michael Robinson, we're only seeing the beginning tremors of this incredible retail finance revolution.
One huge sector that he sees popping up in the digital finance market is called "buy now, pay later," or BNPL. The concept is in the name. When shopping online, you buy or use the thing immediately and agree to pay in installments.
The sector is projected to pop 177%, from $60 billion to $166 billion over the next four years.
And a stock Michael calls "the granddaddy of fintech stocks" is poised to take the biggest piece of the pie.
Under a new presidential administration, we will start to see new priorities for government spending as well as new social emphases enter the spotlight.
Even beyond COVID-19, healthcare is a gigantic debate when we talk about the market under a new president. Credit Suisse says nearly 23 million individuals will be newly eligible for Medicare if the Biden can get a "Medicare for More" type legislation in place.
That's going to boost one stock that specializes in Medicare supplemental plans. Shah says that new Medicare legislation could pump United Health Group Inc. (NYSE: UNH) "through the roof."
It's one of the biggest names in healthcare, offering a range of health benefit plans and services to businesses and individuals across the country.
Of course, healthcare is not the only sector getting a Biden boost. Shah also has stock picks for infrastructure and a Green New Deal on deck. Here are his predictions for those stocks.
These are a few things we know are going to happen in 2021. Things look hopeful with COVID-19 vaccines on the way. Travel and hospitality stocks could finally turn around again if distribution is successful.
Overall, we're potentially looking at a bounce-back year.
Of course, any number of things could get in the way of that. That's why we encourage our readers to keep making informed decisions and never do any one thing just because everyone else is. In fact, it's often best to go against the grain if you're looking to maximize profit.
Remember, this is not about knowing every get-rich-quick trade on the horizon (though we have made our fair share of successful predictions). It's about knowing what to do in any given circumstance.
It's about having enough information to make a decision and sticking to your guns. In other words, it's about being prudent.
We want to give you the tools to be prepared for any market moves at the end of the day. That comes from our knowledge of fundamentals, our careful study of daily market trends, and a deep well of wisdom from decades of trading.
At the end of the day, you're responsible for your decisions. But we're happy to give our two cents.
If you stick with us for the latest stock market predictions and more, you will, at the very least, be more informed than you were yesterday. Short of a crystal ball, nothing beats the profit potential of good information.
This will be even bigger than GameStop: The SEC is pushing for a rule change that would make "deep book" data available to everyone, not just Wall Street's elite.
This is likely a huge, permanent win for small retail investors.
The media's been giving a lot of attention to a three word phrase that strikes fear in the hearts of investors: stock market bubble.
But whether we're in a stock market bubble or not, your strategy is likely to be the same.
After this month's historic short "Super Squeeze," everyone wants to know... Where's the next one?
Well, it's safe to say that something like this will happen again.
In fact, it's already happening.
Those into precious metals may have already heard about it.
But Andrew's going to explain the big problem with the Redditors' latest target...
With GameStop shares sinking fast, the epic GME "Super Squeeze" is all very "last week."
Tell that to Congress and the regulators, though, who are making more noise than ever.
And that means we've still got some things to talk about, because Robinhood's role in all this and what could be coming in the aftermath have big implications for retail investors.
Shah explains why...
If you look at Zoom (NASDAQ: ZM) and Shopify (NYSE: SHOP), you might think we’re in a bubble.
These “stay-at-home stocks make it look like 1999 all over again.
ZM is up 494% year to date.
SHOP is up 179%.
And the S&P keeps chugging along with a 65% return since the COVID-19 crash in March.
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Let’s see if there’s anything to this stock market bubble thing…
Investors who bought the S&P 500 at rock-bottom this year have a whopping 65% gain to show for it.
That’s a lot for nine months.
The S&P 500’s last 65% gain took about five years, from late 2015 to early 2020.
And we know what happened in early 2020… As COVID-19 and other calamities threaten world economies, some investors fear we might be looking down the barrel of another stock market crash.
In the event of a market crash, however, we know what to do.
The name of the game is to always be prepared.
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The election day is upon us at last.
In swing states, it will be safe to turn your television on tomorrow.
The barrage of ads will, at long last, come to an end.
The stock market is going to be looking for a direction to take following the election.
To help you navigate the possible directions stocks could move after the election, I'm giving you my stock market predictions based on every possible outcome.
Where is the stock market heading in the future?
One of the best answers I have ever heard to this question came from a colleague on television.
When asked for a stock market prediction, he replied, "It'll go up until it stops. Then it'll go down."
Although there is good reason to track bullish ETFs and growth stocks, any return could be temporary.
There is an incredible amount of uncertainty given the market's detachment from current economic readings.
That said, here are some things to keep an eye on moving forward.
The majority of stock market predictions for the rest of 2020 say equities will turn south and likely re-test the March lows.
The forecasters cite the seemingly endless drumbeat of terrible economic news.
But none of that has stopped stock prices from surging higher.
It's a contradiction that has puzzled many investors. Stimulus is part of the answer.
But one unprecedented move by the Fed is the real reason for the rally...
The 2017 stock market predictions from Barron's are out, which means the "experts" are about to prove once again how bad they are at forecasting.
Investors who mistakenly trust these renowned Wall Street analysts are much more likely to lose money than to profit.
You see, Wall Street's stock market forecasts serve their agenda, not yours.
Here's a look at how bad these predictions are - and where investors can find much better advice...
It's true that global markets rallied last week, and the Dow Jones Industrial Average has climbed 3.8% since Tuesday, Feb 16.
But our stock market predictions show more losses ahead. In fact, Money Morning Global Credit Strategist Michael E. Lewitt says investors should not be fooled by the strong performance of stocks last week.
Here's why the markets are falling and how to protect your money...
The end of the year is always an opportunity to take stock of what we achieved over the last 12 months.
Money Morning's Michael Lewitt made a lot of predictions about markets, sectors, and individual stocks in 2015 - always aiming to make calls that are forward-looking, actionable, and accurate.
For example, he projected the collapse of Valeant Pharmaceuticals, and many readers made serious profits off of his short recommendation.
Here's how his other 2015 market predictions panned out...
Rather than trust markets to heal themselves, the world's central banks have polluted markets with flawed economic theories and trillions of dollars of debt. Rather than ignite economic growth as they had hoped, however, they have suffocated the global economy.
The Dow Jones Industrial Average, Nasdaq, and S&P 500 each trade near all-time highs as we approach Q3 2015. It's been one of the longest bull runs in years.
Now, many stock market predictions from Wall Street pundits call for a correction as early as Q3 2015.
There are more warnings of a stock market correction circulating now - especially since the Nasdaq and S&P 500 both reached closing record highs Friday.
The Nasdaq Composite closed at a record high on Friday at 5,092.08. That was the first time the index had set a record in more than 15 years. The S&P 500 closed the week at 2,117.69. The Nasdaq and S&P 500 have now climbed 7.7% and 3% respectively in 2015.
At the same time, more than $79 billion has left U.S. stock funds this year.
This chart shows how fast money is fleeing stocks...
