5 Keys to 2021 Stock Market Predictions
The 2021 stock market predictions will start flowing from the pens of the financial media as the end of 2020 fades into the background. There can be no question that stocks are pricing in a very happy new year. Does that make it a bubble? I think the better question is to understand what is holding up the market. The following tenants are why this market keeps going higher. If any one of them falls apart, then the market gets on shakier ground, and investors will start looking for an exit, whether in a nice, methodical path, or a bubble-bursting flee for the exits based upon how quickly the pillars crumble. What’s Holding Up The Stock Market? 5 Keys to Stock Market Predictions Low Interest Rates – The irony is that the economy is very shaky, and everyone including the Fed knows it, that’s why interest rates are at zero. These low rates are a key to propping up the market. Coronavirus Improvement – Look, the U.S. can’t do any worse with Covid than it did in 2020. Between the federal government just ignoring the whole thing, and the states opening and closing randomly, the U.S. Covid response was about …