Credit: Shutterstock photoChange. It comes with or without invitation, bringing with it winners and losers, triumphs and tragedies. The overwhelming trends that will kick off the new year are the return of unemployment to historical levels and the sudden, 50% drop in the price of oil. Over the past weeks, I've pointed out the positive side of all this, which mostly comes down to an empowered US consumer, and mentioned companies and industries that will benefit from this of which, as you can imagine, there are a great many.
But no change is a positive for everyone, hence the incredibly choppy US stock market over the past week, and the surge in volatility, as measured by the VIX. Investors know that cheap oil means good things for the stock market in the long term, but that isn't enough to overcome the uncertainty that necessarily pulls money out of stocks as powerful institutional traders hedge and cover.
Expect a powerful January effect this year, as money flows back into the market, but when the euphoria dies down, a number of very powerful US companies may find themselves dying down with it. Treat the following ideas as just that, ideas, and do your own research before making any move on the stock market.
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This article was originally published on MarketIntelligenceCenter.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
