2019 Market Predictions: Apple and Amazon Bounce, China Caves

By  |  December 28, 2018, 6:08 PM  |  Techonomy Exclusive

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2018 started off well for the markets. Consumer confidence and business optimism reached record highs, unemployment fell to record lows, real wages started to climb, lower taxes boosted investment, and GDP growth crossed the 4% threshold. Starting in late March, stocks saw steady gains. But that all turned pretty much upside down in October as the FAANG group of large internet stocks pressured indices, trade wars escalated with China, and ‘proactive’ measures by the executive branch (yes you know who that is) jolted confidence. The S&P 500 is down 15% since early October.

The tech sector, meanwhile, is burdened by growing worries about the regulatory outlook and concerns about peaking growth rates. There’s a lot of blame to be spread around, as we’ve outlined in Techonomy previously. The end of the smartphone boom, misaligned incentives by big tech companies getting in the way of them pursuing technology’s essential purpose, and insufficient prioritization of the protection of privacy– these trends will continue to shape our future.

Looking into next year, as this all plays out, we will see more pain but also new opportunities. So here are some trends to be on the lookout for in 2019, as well as some shorter-term, more actionable, predictions.

5 Predictions for 2019

James Cakmak was until recently a Wall Street security analyst for over 10 years covering the Internet sector. He is also co-founder of Snailz, a nail salon booking app now operating in New York. Follow him on Twitter: @JamesCakmak

Ryan Guttridge, Adjunct Professor at Smith School of Business, University of Maryland, contributed to this article.

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