Over the past year, investors had some concern over how the strength of the market and geopolitical tensions would affect their portfolios. 2019 ultimately ended on a high note with the bull market continuing and the easing of the trade war between China and the U.S. However, there are still areas to be mindful of, and investors should continue to exercise caution. Here are three areas of interest investors should watch in 2020.
Global events’ impact on the economy
World events always have the potential to influence market performance and the stability of the global economy. Even though the year has just begun, there is plenty happening globally for investors to pay attention to:
- Brexit: As of January 31, the UK formally left the EU.
- The as-yet-unknown impact of coronavirus on the Chinese and global economies.
- In the U.S., the outcome remains to be seen on a presidential election year and potential nominees, along with various policy changes and voter expectations.
Interest rate cuts
After cutting interest rates three times last year, investors may anticipate another drop given global events. For the time being, the Federal Reserve is holding interest rates steady at the current 1.5% - 1.75%.
According to Investopedia, technology will continue to progress full steam ahead in the next year and well into the next decade. Technology coming from AI and big data will change the way businesses operate as well as the way that we invest, while at home and work, consumers will be on “smart everything,” which means “interacting with connected devices on average every 18 seconds compared to 6.5 minutes today.”
Make sure to discuss your financial plans with your financial advisor
In times of global uncertainty, it’s always good to proceed with caution, especially as market volatility is still a factor. If you have any questions, feel free to ask a Chatterton & Associates’ financial advisor how best to protect yourself in order to maintain good financial health.
No matter your situation, we’re always here to help. Our goal is always to work with clients to address their specific needs and to figure out concrete plans of action. Contact us today to discuss your investment needs in 2020 and beyond.
The Team at Chatterton & Associates
Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Federal tax laws are complex and subject to change. This information is not intended to be a substitute for specific individualized tax or legal advice. Neither Royal Alliance Associates, Inc., nor its registered representatives, offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.