Next week in one post 30.12.2019 - 03.01.2020

The stock markets performed exceptionally well in the Trump era and showed impressive results towards the end of the calendar year.

The S&P 500 has seen more than 50% growth since the election of Trump, more than double the average return (23%) on the market for other presidents over the three years they have held office.

The Bellwether Index also reported over 28% this year, well above the average return of 12.8% over the past three years of past US presidents.

Despite the volatility of the US-China trade war, 2019 is the year of the best years for major stocks. The S&P 500 climbed over 3,200 for the first time last week. While business investment plummeted due to uncertainty around the two largest economies in the world, public-market investors remained confident.

We are sending out this year with extended upward trends and the question is whether this trend will continue in the new year. Correction is not entirely possible, even with such values ​​it will be welcome - it will give us the opportunity to buy valuable assets at low prices. With the liquidity leakage from the markets, the indices seemed to be left inertia and climb new and higher peaks every day. But when investors return in the first trading day of January, things can change dramatically.

There are no impressive reports and economic news this week to play the role of catalyst, so the main battle will be between risk on and risk off sentiment. Progress on trade negotiations will also play a role in determining trends, as will Brexit.

While Trump expects a strong market next year, Wall Street is forecasting much more modest gains. The average target for the S&P 500 for 2020 among Wall Street analysts is 3 330, less than 4%, while Trump will need 6% to beat the average yield.

It is an eventful year, and we're not forgetting the US election, but let's focus on the first week.

Monday:
09:00 Germany - Retail Sales
17:00 USA - Pending Home Sales

Tuesday:
17:00 USA - CB Consumer Confidence

Wednesday:
Holiday

Thursday:
03:45 China - Caixin Manufacturing PMI
10:55 Germany - Manufacturing PMI
11:30 UK - Manufacturing PMI
15:30 USA - Initial Jobless Claims
21:00 USA - FOMC Meeting Minutes

Friday:
10:55 Germany - Unemployment Change
11:30 UK - Construction PMI
15:00 Germany - CPI
17:00 USA - ISM Manufacturing PMI

Read more:

• Dow Industrials Falter, Oil Climbs After U.S. Airstrike Kills Iranian Military Leader
• Money Flow before the start of European trading this morning
• The 5 Major Market Engines in 2020
• Money Flow before the start of European trading this morning
• Money Flow before the start of European trading this morning