After such a volatile 2018, predicting what the US stock market will do in 2019 is like guessing where a single piece of paper will land in a windstorm.
Few saw last year’s market mayhem coming after an unusually sanguine and calm 2017.
Investors have some reasons for optimism in 2019: The economy remains relatively strong. Companies’ fundamentals appear robust too, and stocks are undervalued compared to their expected earnings.
Yet political turmoil, rising protectionism, a hawkish Fed and slowing earnings and economic growth have sent shivers down investors’ spines lately.
Those fears caused markets to jolt up and (mostly) down in dramatic fashion in 2018. So what are the risks for investors in 2019?