Stock Market Investors Should Be ‘Extremely Cautious’ in 2019, Claims New Report

The economic outlook for the U.S. and the world economy is not looking so hot. The editors of Seeking Alpha have published a report which concludes that the time of easy returns for the stock market has passed. In short, they argue that investors should be worried, as the remainder of 2019 will be a period of major volatility and high risk.

A Grim Stock Market Outlook for 2019

The report outlines a few key reasons why the traditional market may be in for a bumpy ride for the rest of 2019:

• Equity market volatility has been unusually low.
• Recent gyrations in the stock market are bringing volatility to higher levels.
• Due to blackout periods, companies are less likely to invest in their own shares.
• The KRE ETF, generally seen as an important fund for gauging stock market movement, is moving downward with heavy volume.
• Investors have been lulled into complacency by the booming stock market. The potential for a significant pullback remains high, given such baseless optimism.

Based on the historical data, the report’s conclusion is that we can expect downward movement and market volatility moving forward.

Investors May Flock to Alternatives (Like Bitcoin)

During times of declining stock market returns, investors generally look for riskier assets to recapture the lost profits. This means that there is an opening for digital assets, like Bitcoin (BTC), to become more attractive as the traditional market slowly declines. According to recent polling, millennials have already caught on to this — with close to half trusting cryptocurrencies more than the stock market. 71 percent of millennials also said that they would invest in cryptocurrencies if they were made available by traditional finance institutions. Older individuals, however, seem unphased. Most believe that terrorism, politics, and events overseas are more threatening than a potential stock market crash. This means that the next stock market crash will come as a surprise to many everyday investors. Do you believe cryptocurrencies are the best hedge against stock market volatility? Let us know your thoughts below.