THE 2020 Market Opportunities You Shouldn't
1. RBA's Rate Cut – The Reserve Bank of Australia has made its third reduction in the cash, reaching another record low of 0.75% and causing the AUD decrease of 0.4% (USD 67.22c). Bringing some unpredicted shakes to the economy, the RBA is expected to stick to the “wait-and-see” approach.
The next RBA’s earnings report is estimated to take place on March 3, 2020.
2. Tesla’s Glorious Revenue Growth – The company has added $88 billion to its market cap since the beginning of 2020. Tesla's revenues are predicted to surge even higher, reaching $100 billion within four years with a potential to get to the peak of trillion of dollars within ten years.
Tesla’s is expected to report its earnings on April 22nd, 2020.
3. Brexit Effect on the GBP – GBP’s rate has been spotted moving, being influenced by the Brexit news. The UK trade deal agreement is expected to take place on December 31st, 2020. In case of a positive result, the UK will start a new relationship with the EU or exit transition without a trade deal.
4. Earnings Season – The earnings season keeps providing investors with hot trading opportunities on a wide range of assets. Earnings are reported each quarter, in January, April, July, and October and the next earnings season will start on April 7th.
5. Precious Metals
Gold has been treated as a “safe haven” asset during the coronavirus virus threat period. ETFs (exchange-traded funds) increased Gold positions, making net purchases reach 730,000 ounces for this year.
Silver has reached an impressive near-term height at the beginning of January. Nevertheless, the majority of speculative investors reduced their net long positions, expecting a lack of uptrend movement.
6. BTC – Bitcoin’s price performance remains stable at around $9,300 level with the potential to break the critical resistance of $9,500.
7. ISM Non-Manufacturing PMI - The Institute of Supply Management’s non-manufacturing index climbed to 55 at the beginning of 2020. Economists expect the positive momentum to continue throughout the year.
The next ISM’s earnings report is estimated to take place on May 5th.
8. Energy Sector – OPEC had a meeting in Vienna to evaluate the impact of the coronavirus outbreak on the oil. Demand for crude oil in China dropped by 20% as cities were quarantined and factory production stopped. Oil price broke below $50 per barrel.
There is an extraordinary OPEC meeting planned for March 5th and an ordinary one for June 9th.
9. BOC Release – the Bank of Canada seems to stick to the same monetary policy, keeping the rate at 1.75%. BOC is expecting growth in household spending, strengthened by population and income increase and the recent federal income tax cut.
The next BOC’s earnings report is estimated to take place on July 6th.
10. Politics – Donald Trump delivered his state of the union speech in the light of a potential impeachment, arguing why he should be re-elected. Trump emphasized that he was building the world's most prosperous and inclusive society.
The United States presidential election will take place on November 3rd, 2020.