Current Events > Stocks close out 2019 with best gains in years

(+) Yeah! (+)

Stocks produced their best gains in years for investors in 2019, both in the U.S. and abroad

Stocks around the world closed out one of their best years over the past decade, defying money managers who began 2019 expecting the bull market to be upended by threats from the U.S.-China trade fight and a slowdown in growth.

Just 12 months ago, the mood was far dimmer. The global economy was weakening; stocks, bonds and commodities were falling in tandem; and money managers worried the Federal Reserves interest-rate increases would turn an economic slowdown into a protracted downturn.

Fast forward to the final day of the decade, and stock indexes from the U.S. to Brazil to Germany are up more than 20% apiece for the year. While prior such runs have been met by skepticism, this time, few see the rally ending soon.

The Dow Jones Industrial Averages more than 170% rise from 2010 to 2020 ranks as just the fourth-best decadelong performance in the past 100 yearsa gain that, while respectable, doesnt conjure the fear of excess that rallies in the 80s and 90s did. Many investment banks are forecasting solid, if modest gains for the coming year, citing major central banks easy-money policies, a resilient U.S. economy and a breakthrough in trade talks between Washington and Beijing.

BMO Capital Markets and Goldman Sachs estimate the S&P 500 will end 2020 at 3400, 5.2% above where the index closed Tuesday, while Citigroup and Bank of America have put their target at 3300.

I surely wouldnt expect a repeat as far as the magnitude of market gains, but I think were set up for a better year in 2020 than we were in 2019, said Dan Miller, director of equities at GW&K Investment Management. He added that he is hopeful that the combination of lower interest rates and cooling trade tensions will help sustain stock gains in the new year.

On the final trading day of 2019, the S&P 500 edged up 0.3% to 3230.78, while the Dow Jones Industrial Average added 0.3% to 28538.44 and the Nasdaq Composite added 0.3% to 8972.60. The S&P 500 finished the year up 29% for its best showing since 2013, while the Dow added 22% and the Nasdaq advanced 35%.

Elsewhere, the Stoxx Europe 600 finished the year up 23% for its biggest gain since 2009, and the Shanghai Composite climbed 22%.

Hong Kongs shares lagged behind global indexes, with the Hang Seng ending the year up just 9% after months of clashes between antigovernment demonstrations and police.

Despite a tricky macro backdrop, its been a very, very good year for global markets, said Emma Wall, head of investment analysis at Hargreaves Lansdown.

Many say its difficult to pinpoint what exactly could trip up the rally in 2020.

There are a number of uncertainties that investors say they will be watching: the U.S. and China havent completed a trade deal yet, the U.K. is set to leave the European Union at the end of January and President Trump faces reelection next November.

The global economy has also cooled, with factory activity in particular taking a hit around the world this year.

But the level of anxiety that investors say they have about each of these threats seems far more subdued than was the case a year ago.

The headwinds we experienced earlier in 2019 from the trade wars and potential problems with Brexitthose headwinds have diminished sharply, said Chris Rupkey, chief financial economist and managing director at MUFG.

Adding to that, fears of a recession in the U.S. have eased, thanks to a resilient labor market and signs of solid consumer spending.

Economists surveyed by The Wall Street Journal are forecasting the economy will grow around 1.8% in 2020. That would mark a slowdown from prior years but nevertheless extend the longest economic expansion in U.S. history.

Now that the coast is looking a little bit more clear for the economy, I think its okay to embrace risk here at this stage, Mr. Rupkey said.

https://www.wsj.com/articles/global-stocks-mixed-on-last-day-of-exceptional-year-11577787736?mod=mhp

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My 401k skyrocketed this year

Too bad I can't touch it without penalties for like 40 years and it'll crash and burn and recover to new highs and crash and burn and recover to new highs again and again before then

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Tired-Insomniac posted...

My 401k skyrocketed this year

Too bad I can't touch it without penalties for like 40 years and it'll crash and burn and recover to new highs and crash and burn and recover to new highs again and again before then

That's why you start investing young to ride out the valleys.

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Awesome gains. Great dividends. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress charts or annual reports. Show us what you got man. Wanna see how freakin' high, solid, thick and profitable you can get. Thanks for the motivation.

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Vyrulisse posted...

Awesome gains. Great dividends. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress charts or annual reports. Show us what you got man. Wanna see how freakin' high, solid, thick and profitable you can get. Thanks for the motivation.

Ok

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all thanks to trump

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Vyrulisse posted...

Awesome gains. Great dividends. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress charts or annual reports. Show us what you got man. Wanna see how freakin' high, solid, thick and profitable you can get. Thanks for the motivation.

This template gets me everytime.

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SK8T3R215 posted...

The Dow Jones Industrial Averages more than 170% rise from 2010 to 2020 ranks as just the fourth-best decadelong performance in the past 100 yearsa gain that, while respectable, doesnt conjure the fear of excess that rallies in the 80s and 90s did. Many investment banks are forecasting solid, if modest gains for the coming year, citing major central banks easy-money policies, a resilient U.S. economy and a breakthrough in trade talks between Washington and Beijing.

The Federal Reserve has loaned at least a trillion dollars since September via repo operations to banks and they're still injecting billions of dollars a day. I don't buy this for a minute. Not to mention civil unrest and unstable economies in Venezuela, Argentina, Lebanon, and Chile.

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Sad_Face posted...

The Federal Reserve has loaned at least a trillion dollars since September via repo operations to banks and they're still injecting billions of dollars a day. I don't buy this for a minute. Not to mention civil unrest and unstable economies in Venezuela, Argentina, Lebanon, and Chile.

Idk, big years are almost always followed up by another decent year, we saw this recently in 13-14, time will tell tho

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Thanks Trump!

hell yeah I should be getting my full profit sharing bonus now

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SK8T3R215 posted...

That's why you start investing young to ride out the valleys.

But what if a big crash happens when I'm at retirement age and I lose it all

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Too bad the average American cant afford to buy stocks. The rich continue to get richer.

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Tired-Insomniac posted...

My 401k skyrocketed this year

Too bad I can't touch it without penalties for like 40 years and it'll crash and burn and recover to new highs and crash and burn and recover to new highs again and again before then

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But I thought Trump was so bad he would destroy the economy

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Vyrulisse posted...

Awesome gains. Great dividends. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress charts or annual reports. Show us what you got man. Wanna see how freakin' high, solid, thick and profitable you can get. Thanks for the motivation.

lol. post of the year!

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lol

The guy in the White House has nothing to do with this, good or bad, Obama or Trump.

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John_Galt posted...

Idk, big years are almost always followed up by another decent year, we saw this recently in 13-14, time will tell tho

What drove the gains in the big years, in 13-14. At this point, the point of repo operations is to stall for time to maintain the status quo, the confidence in the market and keep banks afloat.

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That means nothing unless you're a millionaire hedge fund manager

Tired-Insomniac posted...

But what if a big crash happens when I'm at retirement age and I lose it all

Well hopefully you'll have money in an IRA as well that can be transferred to less aggressive options as you age. And hopefully one of your 401k options will allow you to do the same.

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[LFAQs-redacted-quote]

How's that any different from what conservatives are doing?

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cmiller4642 posted...

That means nothing unless you're a millionaire hedge fund manager

OH HO HO.

It's all bullish for crypto. We relish in people losing faith in the stock market and especially losing faith in the US dollar.

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Kazi1212 posted...

But I thought Trump was so bad he would destroy the economy

No one wants that. It's just a fear. People would be more then happy if it doesn't come true.

What does Trump or Obama for that matter even have to do with the economy? That's not a president's job.

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I can retire thanks to all of the Tesla shares I bought at 180 this year. Shout out to the idiots that drove it down to that price.

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Tired-Insomniac posted...

But what if a big crash happens when I'm at retirement age and I lose it all

Well as you age you should be allocating more towards bonds and less towards equity.

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