What are the best stocks to invest in 2020? Are you hesitating to put your money on the stocks this year due to the worldwide pandemic? Above all, it is very important to understand how to save money in this pandemic. As of October 2019, there were headwinds in the market regarding investment in the stock market. However, Goldman Sachs has something positive to say about it. According to this corporate stalwart, in the current year (2020), as many as 7 stocks will be experiencing an upside as indicated by their target prices, although the benefits will not be proportionate when the markets experience an upswing during the 4th Quarter of the financial year.
The anticipation of the United States International Equity Strategy
The chief of Goldman Sachs’s United States equity strategist had anticipated way back during October 2019 that the rallying around would perhaps push the S&P 500 Index to as high as 3,100 when 2019 bids goodbye. This would have been a gain of around 5.5% from the closing that took place on October 7th, 2019.
Best Stocks to Invest in 2020 :
According to the experts, if the predictions come true, then the following stocks would immensely benefit-
- Vertex Pharmaceuticals Inc. (VRTX), +50%
- Discovery Inc. (DISCA), +50%,
- Schlumberger Ltd, (SLB), +52%
- Concho Resources Inc. (CXO), +53%
- American Airlines Group Inc (AAL), +59%
- Under Armour Inc. (UAA), 65%
- Align Technology Inc. (ALGN), +75%
As such, in October 2019, Goldman Sachs anticipated a market rally that will be manifested in the Q4. This scenario, it predicted, would be despite the drop in earnings in Q3 and reigning uncertainties.
Best stocks to invest in the short-term: How it affects the investors’ decision?
The upsides mentioned above are basically the differences between the price targets of a year and the closing prices of the stocks that as on September 30th, 2019. One of the prime attributable factors to the uncertainties and sideway movements of stocks is the trade war that was prevalent between the United States and China.
So, this prevailing scenario would possibly be an indicator as to which are the best stocks to buy in the short-term and the ones that would be wiser to invest in on a long-term basis.
With the pandemic and increasing political uncertainty across the globe, it can be safely said these factors are ruling the present macroenvironment and reason for “mixed economic data”.
The last time the ISM Manufacturing Index slipped was way back in the year 2009 during the months of August and September, recording the lowest in March. Similar instances were recalled from the Great Recession that took place between 2007 and 2009.
Although during October 2019 when the economists were anticipating the upside of the above stocks, there was brisk hiring of the workforce, and as many as 136, 000 jobs were created in the month of September itself.
As such, the rate of unemployment plummeted to 3.5%, the lowest recorded in the last 50 years. As such, there was a lot of apprehension and anticipation that this scenario would in turn foster the purchasing power of individuals and consequently witness a boost in consumer spending.
Best stocks to invest in the long-term: How to decide?
From past track records and trading trends, if you are not expecting immediate or quick cash, it makes sense in investing in the best stocks to buy in the long term. One of the main advantages of keeping your investment for the long term is that it may not give you fast cash. But, definitely, the risk involved would be less. During these troubled times, it is best to safeguard your hard-earned cash instead of taking risks by trade market speculations.
However, with the disastrous COVID-19, the socio-economic and political conditions across the globe have become haywire. There were layoffs and the rate of unemployment skyrocketed. In fact, there is a chain reaction and a vicious cycle.
With the manufacturing units and business entities holding their manufacturing activities, more and more people have become redundant. Due to the layoffs and the purchasing power of individuals nosedived eventually.
Under such circumstances, it is important to assess the correct timing so that you can go ahead with the best stocks to invest in 2020.