December is a key month in the financial market. The markets could swing drastically in either direction depending on a variety of events happening worldwide. The potential for a downside is not an issue to be taken lightly, and investors need to stay vigilant and prepare accordingly.
With economic expansion in the United States continuing for nearly a decade, sentiment has also been on the rise. The fall of 2019 has seen a series of new records in the stock market indices, while the bull run has also kept up its momentum with the exception of a few major selloff events. Now, experts are warning about the potential for a market correction in the coming months.
There are a few reasons why December could be especially vulnerable for a market downturn. Firstly, the seasonal cycle could affect the sentiments. Generally, investors anticipate an end of the year selling period, as traders tend to invest conservatively in order to close out their portfolios. Additionally, new regulations in the United States could come into play, leading to a certain degree of caution among lenders and traders.
Then, there is the concern around a possible Brexit deal. Negotiations have been ongoing in order to ensure that the UK exits the EU in an orderly fashion — a deal that has not yet been reached. Failure to reach an agreement in time could increase volatility in the global markets and trigger a market pullback.
Finally, increased tensions between the United States and China could also lead to market volatility. Both countries have been in a trade war for several months, which could affect the world’s growth. If their disagreements get any more heated, there is a risk of further economic slowdown and market volatility.
Overall, December looks to be a risky month for financial markets. There are a few potential triggers that could cause a market downturn. Investors should be vigilant with their portfolios and exercise caution when making decisions. December should be a period of planning rather than reckless speculation, in order to ensure that they are prepared in case of any unexpected events.
December is a key month in the financial market. The markets could swing drastically in either direction depending on a variety of events happening worldwide. The potential for a downside is not an issue to be taken lightly, and investors need to stay vigilant and prepare accordingly.
With economic expansion in the United States continuing for nearly a decade, sentiment has also been on the rise. The fall of 2019 has seen a series of new records in the stock market indices, while the bull run has also kept up its momentum with the exception of a few major selloff events. Now, experts are warning about the potential for a market correction in the coming months.
There are a few reasons why December could be especially vulnerable for a market downturn. Firstly, the seasonal cycle could affect the sentiments. Generally, investors anticipate an end of the year selling period, as traders tend to invest conservatively in order to close out their portfolios. Additionally, new regulations in the United States could come into play, leading to a certain degree of caution among lenders and traders.
Then, there is the concern around a possible Brexit deal. Negotiations have been ongoing in order to ensure that the UK exits the EU in an orderly fashion — a deal that has not yet been reached. Failure to reach an agreement in time could increase volatility in the global markets and trigger a market pullback.
Finally, increased tensions between the United States and China could also lead to market volatility. Both countries have been in a trade war for several months, which could affect the world’s growth. If their disagreements get any more heated, there is a risk of further economic slowdown and market volatility.
Overall, December looks to be a risky month for financial markets. There are a few potential triggers that could cause a market downturn. Investors should be vigilant with their portfolios and exercise caution when making decisions. December should be a period of planning rather than reckless speculation, in order to ensure that they are prepared in case of any unexpected events.
