What Has the Stock Market Done for Your Investments in 2015?
Investors will look back on 2015 with mixed reviews depending of course on the growth or losses experienced in their individual portfolios. But no one will argue that this has been a year of considerable volatility that both raised concerns and created opportunities. As with all day trading timing is a key factor in such turbulent times.
Global financial and political volatility have fanned the fires of stock market turmoil even further.
- Financial collapse in Greece that was narrowly averted through a last-minute bailout
- China’s weakening economic conditions
- Terrorist attacks in the US (California) and Paris
- Syrian civil war and involvement by Russia and the US, including Turkey’s shooting down a Russian fighter
- Significant reduction in global oil prices
- Anticipation of US Fed interest rate increases (and final announcement)
Though there were shining lights for traders who recognized the right market segments and individual acquisitions that could realize significant gains the market has taken most on a ride that won’t soon be forgotten. The Dow Jones is now poised to finish the year with a negative result for the first time since the 2008 crisis when financial markets lost 30% of their value. That experience presented an entirely new outlook to investors toward their investing strategy to be sure. Today’s day traders can learn from such historical events to avoid similar losses.
Where Will the Stock Market go Next?
Anyone who claims to know exactly where the market will go next is of course unrealistic to say the least. Remember that financial analysts last year at this time predicted a 10% gain for markets in 2015, compared against the current trend for a 2.3% loss at this point. But there is consensus among many analysts that 2016 is expected to produce at least modest gains for 2016 to the tune of an average 9-11%.
Some investors will cling to a strategy of tying their investments to companies who historically increased dividends passed to investors for at least 25 consecutive years. This limits portfolio assets to only about 10% of the S&P 500 who meet that level of performance. Fortunately finding these companies is relatively simple through monitoring the Dividend Aristocrat Index which monitors exactly those companies that meet these performance criteria. While repeated dividends makes investing in funds tied to this index appear attractive and relatively safe it may not provide the returns some traders are looking for – currently trending at 2%.
Bright spots that financial strategists lean toward for 2016 are the financial and technology sectors. Interest rate hikes by the US Fed are expected to tighten financial markets to some extent with the increased cost of money and anticipated moves by companies to refinance debt. However there is confidence expressed by most analysts that interest rate increases will be limited and controlled to avoid any serious financial consequences.
Stock Market Performance and Day Trading
Maintaining vigilance is a trait of value to both buy-and-hold investors and day traders. Volatility is just one reason to select an online broker who provides news feeds and analysis software that leverages knowledge for trades whether buying and selling stocks, bonds, currencies, or commodities.
SureTrader is a leading online broker with the tools you need to stay up-to-date on news and trends that impact your buy and sell decisions. Understanding market trends and news feeds can help you develop and quickly adjust your individual trading strategy. SureTrader provides friendly and courteous support available to our clients on a 24×7 basis to answer any questions and resolve problems.
SureTrader’s desktop and mobile applications ensure timely and flexible access to SureTrader services – iOS and Android platforms are each supported. Global access to services enables quick and easy trades even in after-hours trading.
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Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.