empty
 
 
22.10.2020 04:40 PM
Good time to shop: stock market may rise in the long run

This image is no longer relevant

According to experts, the world's stock markets will show high volatility at least until the end of November this year, despite the fact that the US government will sooner or later sign a bill on new financial incentives in the country. In this regard, now is an extremely good time to buy securities, while they are declining against the background of existing concerns of market participants.

Analysts who predicted the previous correction that occurred in September now insist that the probability of a deep collapse ahead of the US presidential election is very high. According to the majority, market participants should no longer worry about reviewing the results of the elections, since there is no longer any tension on this issue. This, in turn, means that the failure that will occur on the stock markets of the world in general and the US, in particular, will be temporary and easily corrected. Thus, you should take advantage of a good situation in order to make a profitable purchase.

If the S&P 500 indicator reaches 3,100 points, and the election is not yet held, then increased interest in buying on the stock market will be inevitable. At the same time, no external factors or news can put significant pressure on this.

It is also worth noting that the incentive program in the US cannot be adopted sooner or later. However, its ratification will happen, and therefore, the market has reasons in the long term to gain rapid momentum for growth. It is especially important that the results of the presidential election will not have any impact on this, that is, the growth will occur regardless of which candidate gets the most votes. It is almost impossible to avoid a surge of interest in risky assets.

The final results of the US elections will most likely be presented by thanksgiving, that is, by November 26. And in the interval between voting day and the announcement of the winner, that is, from about the 3rd to 26th of November, we should expect the highest volatility in the current year. The market will shake as it is mired in a state of uncertainty.

Another extremely important factor that cannot be written off, in any case, is investors ' concerns about the second wave of the coronavirus pandemic, which is rapidly spreading everywhere in the world. The state of uncertainty about the release of the COVID-19 vaccine is particularly pressing. So far, no clinical trials have resulted in a positive result.

All this, of course, may lead investors to temporarily stop their active work and act with caution. However, everything will change dramatically as soon as the results of the presidential election are presented. Even the complex epidemiological situation in the world may go far into the background, at least temporarily. Some experts assumed that Biden's victory will make corporate taxes significantly higher, which may be too unrealistic. Or, it at least it won't happen right away. Any such decision may not come into force until 2022. Until then, everything can change dramatically.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback