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Stocks are going up, but for how long?
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Disclaimer: This post is purely speculative.

As of the current pandemic, stocks have plummeted to lows we havenโ€™t seen in a decade during a historically great bull market. Companies giving out dividends have slowed and some have cut them entirely with the possibility of them being restored being unknown; however, the markets have been going up for nearly a month or so and seem to continue to be climbing. Along with an increasingly healthy stock market, it is possible that companies who lowered or outright cut their dividends could soon bring them back to where they were prior to 2020.

With this in mind, anyone who has invested for a notable amount of time should know that the stock market will always have ups and downs and is not entirely tied to the health of the economy. It is true that the stock market CAN be an indicator of the overall health of the economy, but is absolutely an entirely separate entity. Just because stores and companies (in the U.S. at least) are slated to begin reopening does not necessarily mean that, financially speaking, we will see an increased upturn in stocks.

So what should we expect? Personally I could see stocks soar by perhaps 10% on average throughout the summer, maybe even more. But keep in mind that 2020 is an election year and nearly every election brings uncertainty in the markets. Normally roughly a week or so surrounding the election sees some stocks plummet and others rise with an eventual correction.

Honestly I forgot where I was going with this post as I was typing it, but do keep in mind these points as you continue to invest. It is still a good time to buy stocks, and those companies who have continued to pay out their normal dividends (I have LEG, RIO, and KO for example) should be considered highly valuable due to them having the ability to maintain success and viability despite everything else happening right now.

What do you expect from the stock market throughout the remainder of the year? Share your thoughts!

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4 years ago