Tuesday's Market Minute: Looking Back To Last Year

A year ago, the stock market began a sharp slide that sparked recession fears and cast a gloomy outlook on 2019. However, the S&P 500 began its upswing right before the New Year, and has not only made new highs, but broke 3,000 and continues to climb. However, few things have changed: the Trade War is still ongoing, with little sign of a near-term resolution. The consumer is still showing strength, as evidenced through economic data reports, and a hugely successful Black Friday and Cyber Monday.

Economists are generally pushing off any recession predictions from 2020 to 2021 or beyond, though last year a shorter timeline seemed certain. However, manufacturing is slumping, and as the ISM report yesterday showed, now below break-even. The Fed's lower rates means less room to maneuver should anything else fall. So, what's next for 2020: continued gains, possibly driven by an end to the Trade War, or a plunge downwards?

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Image by Ahmad Ardity from Pixabay