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December 28, 2019
Five Bonus Predictions for the New Year
By Tim Melvin
Dear Reader,
I have a long history of not making market predictions beyond [my annual forecast](.
Predicting the movement of markets is a fool's game and is more about marketing than anything else.
However, it's the last weekend before New Year's, and everyone is getting ready for what may lie ahead, so I'm going join the fun by predicting some things that will NOT happen in 2020.
Indecision 2020
First, we will not see a far-left candidate win the White House.
What is selling in the primary circus will not sell in the broader market of a general election.
The moderates and independents aren't suddenly going to buy into the idea of Medicare-for-All and eating the rich.
Most Americans don't want to pay higher taxes and have higher utility bills to fund a utopian effort to go green a few decades before it's possible to do so.
Either a moderate Democrat gets to the top of the ticket, or - much like 2016 - millions of Americans will either stay home or vote for the President to be reelected because incredibly it's the more rational choice.
The markets may get pushed around by the headlines along the way, but the numbers will continue to guide us through and help us find the opportunities from potential political missteps.
Making the Most of Brexit
Next up, London will not disappear because of Brexit.
Brexit is going to happen, and it looks like it will be a very messy parting right now.
London banks and real estate may see selling pressure, and when they do, it will be a buying opportunity of epic proportions.
And don't worry, London's role in the world won't change all that much. It will still be a major financial center (currently the fifth-largest economy in the world) and the capital of the United Kingdom.
REITs with a lot of London exposure and banks like Barclays PLC ([NYSE:BCS]() would be outstanding long-term holdings if they were to drop sharply because of Brexit.
[Here's How You Can Build Your Network (and Your Wealth)](
The Trade War Shuffle
While we're on the international scene, there won't be a major trade deal between the United States and China.
There is absolutely no way that Premier Xi is backing down on significant issues.
Xi will not risk making himself look weak and threaten his tight grip on the reigns of the Chinese Government.
On our side, Donald Trump isn't going to back off on technology theft or government subsidies.
We will continue to have an impasse with lots of posturing and finger-pointing, but no deal of substance will be reached.
The Fed Stays Quiet
The Fed will not raise rates in 2020.
They saw what happens when you try to push rates even a little higher in the fourth quarter of 2018.
The market is addicted to low rates, and the withdrawal symptoms are not good for stock prices or the economy.
There will be a lot of talk and press releases, but the economy will look a lot like it did in 2019 with low growth and no inflation that the Fed can measure.
You and I will probably pay more for most of the things we buy, but inflation - as defined by the Government - will not exist.
Follow the Numbers and Live Your Best Life
Finally, I will not stop kicking over rocks, running tests, and reading a voluminous mountain of material in my search for ways to make us money in the stock and bond markets.
The vast majority of ideas that I investigate won't make the cut, but the strategies I find that work will be new and powerful tools to help us get to where we want to go.
When it comes to investing, there are a lot of bad ideas and a tiny handful that build wealth.
My job here at Max Wealth is to focus on helping you sidestep the bad ones and use the good ones to pile up life-changing wealth no matter what the markets and the economy may do in the next year and beyond.
There will be a lot of predictions about what the markets will do in 2020, but just like almost no one predicted the moves we saw this year, the path of stock prices will be vastly different from what everyone is suggesting right now.
Acting on a prediction for stock prices in 2020 is a risk that will probably cost you money.
Follow the numbers, and you'll be ahead of the herd.
Have a wonderful and safe weekend,
Tim Melvin
Here's what else I'm following...
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[Devastating market storm headed our way (Are you prepared?)](
Right now, our economy is operating on borrowed time - and you may only have days to prepare for an economic disaster that could leave you and your family stranded in a[deadly debt emergency](. Even billionaires are panicking... in fact, during a recent interview, one prominent billionaire issued a grim warning: "It's 'a certainty' that we will have another financial crisis like in 2008." We're just a hair's width away from total mayhem. [Learn how to protect yourself before it's too late](.
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