This year will be quite unpredictable for the U.S. futures. Impeding presidential elections can cause more volatility. There are also concerns about economic growth and slowing earnings. For now, the American stocks are still riding on their high, but this can change in the coming year.
Some analysts even forewarn about a possible collapse. Gary Hager says that the U.S. market’s record-setting surge makes him nervous. President and CEO of Integrated Wealth Management fear that this “melt-up could precede a meltdown.” He counsels to put off investing in U.S. stocks.
At present, European and Asian futures seem more attractive for long-term investors. Hager contemplates the possibility that China could benefit more from the phase one deal than the U.S. After all, Dow Jones, Nasdaq 100 and S&P 500 are moving on their record highs. And without any signs of slowing.
A chief market analyst with AvaTrade, Naeem Aslam, also thinks that the trade deal won’t add any serious help to the U.S. economy. He expects the American markets will slow down significantly.
Will European markets lead the rally?
According to Naeem Aslam, it a real possibility. The European central bank maintains low-interest rates to stimulate the economy. The U.S. congress lowered corporate taxes, thanks to President Trump’s. However, it seems he has already tried almost every way to cause fiscal stimulus.
Asian markets earnings will probably grow higher. Mark Haefele, UBS Global Wealth Management’s chief investment officer, thinks that Asia is the best choice for emerging market equities. Other experts also agree that Asia is a better bet. But Emily Weis recommends avoiding China in favor of the other countries’ markets. It’s hard to see how much more momentum can be in China until the phase two deal – says State Street’s macro strategist. South Korea or even Japan could prove an excellent choice for investments.