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.
.
Let’s see if there’s anything to this stock market bubble thing…
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.
.
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...
Trusting Wall Street stock market predictions could be hazardous to your portfolio's health.
In particular, the annual Wall Street stock market predictions made by the top analysts are so inaccurate, a blindfolded monkey with a dartboard could do better.
Collectively, the forecasts of these "experts" over the past 15 years have been off by an average of 14.7 percentage points a year. That's worse than if they'd simply guessed the long-term average return of 9% every year.
Any other worker with a track record like this would be fired immediately...
Stock market predictions are typically bullish in April. According to The Stock Trader's Almanac, the S&P 500 has climbed every single April since 2006 by an average of 3.1%. Since 1950, it has been the best performing month for the Dow Jones.
This monthly spike is usually attributed to strong Q1 earnings reports hitting Wall Street. Numerous companies will also raise their guidance figures for the full year in April.
This year, things aren't as bullish in the short term. Our stock market predictions today call for continued volatility into Q2.
For the first time since 2008, stocks traded down on the last trading day of the year and the first trading day of the New Year.
Whether this will prove to be a mere statistical curiosity or a harbinger of troubles ahead remains to be seen, but there are enough headwinds facing investors to force them to don foul weather gear for the year ahead.
When it comes to the stock market, it's not the "little dips" that are a concern, Money Morning Capital Wave Strategist Shah Gilani said Tuesday.
What is worrisome are the "black holes," and if and when we'll step into one.
With Goldman Sachs' $100 million loss Tuesday, and the Nasdaq shutting down for hours today, looks like we're already there...
Click on Shah's video for the full story.
