President Trump likes to talk about the stock market. He takes credit for putting more virtual money into his voter’s base 401 accounts. Trump beats his chest like King Kong when he talks about the economy and his foreign policy decisions. After all, Trump has king qualities running through his New York mobster-like genes. And he’s proud to show the world how dangerous they are.
But according to several financial experts, the stock market and the economy may bite Mr. Trump where the sun doesn’t shine in 2019. According to investment experts like Jim Cramer, now’s the time to think more than twice about keeping all your investment money in the stock market. Cramer thinks the recent stock market adjustments are just the beginning of a bear market that will haunt investors for the next year.
Cramer and hedge fund genius David Tepper say keeping cash on hand in 2019 is the right investment. Tepper thinks the best thing to do now that the bear is back is to do nothing. The experts say don’t run to the bond market because the yields don’t make sense.
The recent Fed interest rate increase proves there’s danger dead ahead, according to the hedge fund gurus. The hedge fund giants like Soros and Tepper pulled lots of money out of the stock market two years ago. They invested some of that money in the precious metal market, and they built a cash fund with the balance.
Trump voters say the stock market will come back once Trump wins his trade war with China. But it’s not just the trade war that’s making investors act like nervous fools. The Brexit situation, as well as interest rates hikes, along with China’s economic slowdown, all play a role in a global as well as a U.S. recession. Plus, 2019 corporate earnings projections are way down.
Corporate earnings in 2018 grew by more than 20 percent. Financial analysts say corporate earnings growth in 2019 will only hit five percent. That projection, according to some investment analysts, is the main reason the stock market has investors biting their nails.
But the financial experts still say investing in the stock market makes sense if the goal isn’t a quick return. Stocks still make sense in the long term, according to certified financial planner and the chief financial analyst at Bankrate, Greg McBride. McBride thinks the worst thing investors can do is go into knee-jerk mode and panic-sell stocks.