2017 has been a great year for investors. Here are how the top 10 stock markets in the world perform this year:
- TSX Composite Index is up for almost 6%
- Dow Jones Industrial Average is up for about 24%
- NASDAQ is up for about 27%
Hang Seng Index in Hong Kong is up for about 37%
- SSE Composite Index in Shanghai is up for more than 5%
SZSE Component Index in Shenzhen is up for almost 8%
- AEX-Index of Euronext is up for almost 14%
- FTSE 100 Index of London Stock Exchange is up for more than 7%
Nikkei 225 of Tokyo Stock Exchange is up for more than 18%
S&P BSE Sensex in Bombay is up for more than 37%
So what about 2018?
Personally, I do not see any dramatic indicators that says there is going to be another stock market crash. Maybe there will be a correction, but anything similar to what happened in 2018 and 2011 are very unlikely to happen.
With tighter regulations being implemented to lenders on how much money they can lend to borrowers to purchase properties, for instance, it is less likely for people with less money to make fast fortunes (just like how people become millionaires from trading crytocurrencies). As a result, it is very hard for a real estate bubble or stock market bubble to occur at this moment.
This is why the rich gets richer because they have the money and resources to make more money from money.
Second of all, I think 2018 is going to be another bull market because Donald Trump is still the president of the United States.
As much as Donald Trump wants to bomb North Korea and deport all the illegal Mexicans back to Mexico, he is a businessman.
He understands that the American economy is controlled by many of the companies listed in the New York Stock Exchange and NASDAQ, therefore he would make sure these companies perform well. Shareholders of these companies, ultimately, benefit as well.
The only things I think that would impact the stock market in 2018 significantly are the drawbacks from Brexit and NAFTA (North American Free Trade Agreement) negotiations and the tension between Donald Trump and North Korea.
But other than that,
I think Donald Trump is a smart businessman and understand the success of the stock market is crucial to his presidency.
So here is my two cents on the stock market in 2018. What do you think the stock market in 2018 is going to be? Please leave you comments below! Catch you on the flip side!