Which Market Trends You Need to Be Concerned With

The finance industry is a challenging one to keep up with. When you’re working with the money of your clients, one thing is for sure — you need to stay on top of every little change. Even though providing financial guidance to your clients is your job, it can be extremely challenging to provide them with the very best advice when you’re not sure which market trends you need to be concerned with. 

In today’s blog post, the team at Alpha Droid is going to cover a few of the current market trends that you should keep an eye out for. For help staying on top of market trends on a day to day basis, learn more about our algorithmic trading software. 

Lower Expectations

At the start of 2019, the U.S. experienced lower equities in the stock market, which leads us to believe that we could see some lower equities throughout the year. That being said, at the beginning of 2018, there was also a lower equity rate, and the year did not finish off that way. While there’s no guarantee for how this particular trend will carry through the year, it certainly is one to keep an eye on. 

Drop in GDP Growth

Tax cuts had a serious reaction from a majority of the population. These tax cuts were also the reason that we saw a drop in the growth rate of GDP thus far into 2019. While some anticipate the growth rate picking back up, most feel that the GDP growth rate will be at an all-time low by the fourth quarter of the season. Given the drastic drop in growth, you are certainly going to want to watch this particular trend throughout the year.

Pause in Interest Rates

Interest rates are another area of finance worth watching closely. While 2018 increased interest rates significantly, this isn’t expected to continue in 2019. Right now, Fed Chair Jermoe Powell says that he feels interest rates are right below what he considers to be a neutral level. The hope is that this trend doesn’t lead to a decline in the earnings of shareholders that are active within the stock market.

Value Stocks are Gaining Popularity

In the last couple of years, we’ve seen growth stocks become the more popular option when looking to invest in the stock market. In 2019, however, we are seeing more and more people choose to invest in value stocks. With so many investors concerned about the chance of a recession, we wouldn’t be surprised to see growth stocks completely fade out of market trends and have value stocks regain popularity. Some believe that this trend and how investors choose to act on it could make or break their stance with the market this year.

A Drop in Technology Stocks

Technology has been an incredibly lucrative area to invest in for the last decade or so. In 2019, however, some are suggesting investors stay away from technology stocks. Most stocks in this revenue are expected to provide investors with high earnings and high valuations. With that being considered, many believe that the tech stocks have reached, if not exceeded, their valuations, which could leave individuals investing in this area struggling with their earnings. Again, keeping an eye on this trend to ensure your client’s money is invested in the right sector is definitely something that you’re going to want to do, especially if this trend proves to be true.

Try Alpha Droid Strategies

As we said earlier, having to stay on top of the never-ending changes that happen in the finance industry can be challenging. Alpha Droid has worked tirelessly to provide financial advisors with a software that makes it just a little bit easier to keep tabs on the market trends and how they’re changing. 

Our calculated algorithm provides financial advisors with a variety of algorithmic trading strategies to work with. Ultimately, our software is designed to help you choose wisely when working with your clients. Take a minute and learn more about our software and why we’ve worked so hard on perfecting it. If you feel that you and your practice could benefit from it, start your 30-day free trial and find out for yourself. Feel free to contact our team if you have any additional questions, concerns, or inquiries. Our team would be more than happy to assist you.