Question

Please share your opinion about the US stock market , including: the performance of the stock market in the past several months, the factors that influence stock market, relationship of stock market and companies' financial performance, and your forecast of the stock market for the next 2 months.

Answer 1

United State stock market is called mother of all the markets and it is providing a direction about the global economy and the performance of United States stock market has been highly bullish in the past few years because the United States stock market has been in a long term bull run and it has even shown the V-shaped recovery after the coronavirus crisis.

The performance of stock market has been due to various factors like supportive monetary policy and sound economy as well as better recovery and sound employment. the rate of return of stock market is also impacted by better company reputation and higher security to the investors and better rules and regulations as well as high degree of public disclosure norms.

Stock markets and companies are mostly moving in similar direction as there are very few companies which are having opposite moments because they are having their Micro factors dominant than the Macro factors.

My forecast for stock market for next two months is that this stock market is going to go down because I am forecasting a loss for the Donald Trump and Joe biden is not a Pro market and he is pro social person and it can lead to massive saleoff fom the investors who are looking for capital appreciation.