A new decade is already underway, and financial markets are looking like they may soon start heading up, according to Jordan L. Kahn, CFA. Kahn is the Chief Investment Officer at HCR Wealth Advisors, a registered investment management firm for high-net-worth individuals.
This is due to several factors, including a presidential election year and global market turbulence. While Kahn says markets will be generally favorable, he also warns of volatility. Those expecting a repeat of 2019’s bullish market will be in for a much harder ride.
“We remain upbeat in our outlook for the coming year,” he says. “But with realistic expectations that a repeat of 2019 is unlikely.”
A Strong Start to the 2020s
The current White House Administration made a flurry of sweeping changes in the late 2010s. When combined with other geopolitical issues, the global economy (especially in the United States) made impressive gains in this period. Several new global markets also appeared in the timeframe.
Cryptocurrency, blockchain, cannabis, hemp, and vaping all became prolific industries, where innovators and entrepreneurs drove historic growth. This helped propel the economy, but each investment comes with a high amount of risk. At any given moment, regulatory changes could cripple one of these rising stars.
Navigating an Uncertain Future
No investment is ever foolproof. That’s why HCR Wealth deploys a team of professionals to serve each of its high-net-worth clients. This ensures each client receives personalized investment strategies and data that’s custom-fit to their individual investment portfolios.
Mitigating market downswings with other investments is key. Selling an investment low to recoup costs can end up losing a lot of money. Unless a company is heading for insolvency, don’t sell your stock until it’s higher than you bought it for.
Low interest rates provided by the Federal Reserve and a thriving global economy will lead to gains. All it takes is an experienced financial advisor who can guide you through the chaos of 2020s rocky market.
This article is provided for informational purposes only and should not be interpreted as investment advice.