Skip to content

2019 Was a Big Year in the Stock Market – What’s Next for 2020?

by Financial Design Studio, Inc. / December 26, 2019

what’s in store for 2020 draft fee only financial advisor deer park barrington

 

financial advisor robert stoll cfp cfa chief investment officer draft commentary Profile About

2019 Was a Big Year in the Stock Market – What’s Next for 2020?

Last week we talked about how 2019 was shaping up to be a great year for the stock market, rising about 30% for the year. Not too many people predicted that outcome a year ago!

The natural question is: what’s in store for 2020? We don’t know – nobody does. 

But as I’ve mentioned before in this column, we can look back at history as a potential guide of what’s to come. Emphasis on the word “potential” …

Below is a list of all the years in which the S&P 500 Index generated Total Returns (price returns plus dividends) of at least 30%. The column on the right is what happened to the stock market the year AFTER those big gains.

 

financial design studio fee only financial advisor deer park barrington total returns was a big year what's in store for 2020

Most market forecasters would argue that we’re due for a year of low returns – if not an outright correction – after having such a big year. But history hasn’t played out that way.

In fact, average stock market returns are a respectable +10.8% after a 30%+ gain the year before. 

The debate about what the stock market will do in 2020 isn’t the critical question for you and your family as we head into the New Year. The real question you should be asking is, “Do we have specific and measurable financial goals in place for our family?” In other words, do you have a financial plan in place to achieve your family’s life dreams?

You can’t control what the stock market will do next year. But you can control how you prepare your family for the future.

Maybe 2020 should be the year you get that comprehensive financial plan put into place. Having a plan not only gives you a better shot at achieving those dreams and goals you have rolling around in your head. But it also brings peace of mind as well.

As we head into the New Year, we at Financial Design Studio want to wish you the best. And we want to invite you to take that next step and reach out to us. Comprehensive financial planning is what we do and what we’re passionate about! 

Wondering how this affects your future finances? Schedule a call with Financial Design Studio, financial advisors in Deer Park, to discuss your portfolio today.

 

financial design studio financial advisor deer park Contact Us

 

VIEW MORE FROM FINANCIAL ADVISORS IN DEER PARK

financial advisor fee only stocks have had a great year draft blog

 

Financial Design Studio Year-End Financial Checklist Free

Ready to find out more?

Contact us today for a free 30-minute consultation!

Recommended Reading

Interest Rates

More Stimulus and Interest Rates – Does one lead to the other?

Will more stimulus lead to higher interest rates? Many factors influence the interest rates in the economy.

pension analysis

[Video] Pension Option Analysis

[Video] Pension Option Analysis| Pension Option analysis decisions can be difficult to evaluate alone. Making the right decision can save thousands of dollars over time.

Financial Design Studio, Inc.

We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.