The ultimate goal of every investor is making a profit for each investment. A majority of investors believe that 2016 will be a good year for them. In January 2015, many investors thought they would make more gain, but the year changed for worse between August and October. The unexpected shift prompted analysts and investors to focus primarily on risk. Most investors concentrated on deeper skepticism and risk review. Such trends are common anytime there is a high threat associated with a particular stock.
Unawareness about the future of a particular stock market is the primary cause of stock uncertainty. Many investors hoped that the oil prices would rise. However, the entire economy was adversely affected by reduced oil prices. Financial experts including Goldman Sachs tried to evaluate why the cost of the commodity fell. The stock market was expected to suffer the most. Most of the financial specialists used the Domino theory to explain how the whole economy might look like.
Reputed investors usually invest in well-performing stocks. Investors should first explore the reports about the performance of past stocks before selecting the ideal stocks to invest in. Forecasting and other techniques utilized by financial experts assist prospective investors in making informed investment choices. Market analysis is an essential tool for all investors wishing to succeed in stocks.
James Dondero’s Expert Advise
James Dondero, the President and Co-Founder of Highland Capital Management firm has excellent certifications in CMA and CFA. Jim’s career as a financial analyst commenced in 1984 after attaining the above certifications. He has over three decades of experience in equity and credit markets. Jim resides in Dallas, Texas where he concentrates on investment related issues. Since 1963, Highland Capital Management has been setting the pace in credit and investment industry. Jim recommends the establishment of reliable institutions and is actively involved in the creation of legal institutions dealing with hedge funds. Watch Jim and his team ring the NYSE Closing Bell below.
Prospects from Other Financial Experts
Financial experts suggest that it is a nice idea to purchase ‘safe’ stocks that yield nice dividends and seem conservatively valued when stocks appear weak or risky. Many investors buy stocks when market produces many desirable returns. Such a trend results in an increased demand for investing in promising companies. As a consequence, it is the right time to invest in the leading growth firms.
Why Invest in Stocks in 2016?
Since 2015 was not a good year for investors, most of the investors expect the same in the New Year. On the contrary, when the investors attitude shift from the risk side to the ‘worry’ side, the probability of making good returns increases due to the countermove swing.
In conclusion, last year, investor choices shifted from optimism to skepticism. The investors should consider investing in the latter market environment that offers the best return potential. The New Year, 2016, seems to be the best time to invest in the US stocks.