2020 will go down in history as a year which seemed surprisingly easy to make money… on hindsight. It was also a year some amateur traders can boast that they beat the pros as buying on dips turned out to be the correct answer most of the time.
Dow Jones, Nasdaq and S&P are trading at their all time highs while the world seems to be scrambling to contain the onslaught of the virus, leaving thousands dead and the world economy in tatters.
There is a disconnect between the stock market and the economy.
While one may argue that the stock market is driven by the lofty expectations of armies of traders sitting behind their desks or the fiscal largesse of central banks, the assets bubble that was created has real world implications.
Rising inequality caused by the K shaped economic recovery is a ticking time bomb. The poor are hit harder than the rich during this pandemic. Working from home was not an option for many jobs that were eliminated.
Markets have also priced in optimistic expectations for global growth. This sets up investors for potential pain in 2021. The combined market value of equities and bonds is now $169 trillion as of 23 Dec 2020, almost double the world’s expected gross domestic product for 2020. Even assuming world output grows 5.2% next year, that will still leave a yawning gap between real world output and financial assets.
The situation will get trickier if things start to improve and stimulus are removed.
What will happen next? Can traders continue to feel lucky buying on dips? What will be the next investment theme for the 2021?
Come glean market moving insights and get ready for 2021. To find out whether the strength of cryptocurrencies will be here to stay or just a fading fad, Robin’s stock picks, and his view on commodities – get access to the the free market outlook and join us on the webinar.
He became a well sought after speaker after turning $100,000 into $2 million in 15 months during the 2008 Global Financial Crisis. Since November 2017, he has partnered with Societe Generale to promote the Daily Leverage Certificates (DLC) via webinars and monthly seminars.
Over the years, he has mentored thousands of traders and has been an accredited trainer at SGX Academy since 2012. Hundreds of subscribers are following his proprietary trading signals that use price action strategies, which he believes is most relevant for the volatile market today. He has also been featured in major publications such as The Straits Times, The Business Times and Zaobao.
Here is what some of what some attendees had to say about the webinar…