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# An Overview of Market Trends and Stock Predictions for 2020

As we transition into 2020, experts Chris Hill, Andy Cross, and Jason Moser discuss the sharp rise in market performance and preview relevant stocks to watch. This article summarizes their key insights from a recent discussion, providing a broad analysis of market metrics, influential trends, and individual stock picks.

## Market Performance Recap

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The financial landscape has shown remarkable improvement over the last year, with the market up around 25% overall. When factoring in dividends, the rise is even more impressive, surpassing 29%. Notably, the Nasdaq 100 has outperformed, showing a substantial increase of 36%. Large-cap growth companies such as Apple, Microsoft, and Facebook drove much of this performance, rebounding significantly after a turbulent previous year.

In December 2018, the market was precariously low, marking the worst December it had experienced since the 1930s. However, 2019 has been characterized by a strong recovery across various sectors isn't just limited to large tech companies. Other sectors, such as healthcare and consumer finance, saw significant rises as well.

### Stock Highlights

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Several baskets of stocks were discussed; for instance, those involved in the "War on Cash," including Visa, MasterCard, PayPal, and Square, saw a 36% increase. Additionally, a healthcare and wealth care basket—comprising UnitedHealth, Massimo, IntelliDose, and Idec’s Labs—gained 42%, showcasing the broad-based growth across industries.

Even the average stock on the S&P 1500 saw positive momentum, with an increase of approximately 23%. While 78% of these stocks experienced positive returns, many still lagged behind market leaders, highlighting a skewed distribution of success in the investment community.

## Notable IPOs and Market Ramifications

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The conversation turned toward noteworthy events impacting market sentiments, particularly the controversial WeWork IPO. Despite initial enthusiasm, the company's struggles and the impending shelving of its public offering marked a significant downturn, impacting other IPOs negatively. This turmoil has led to increased scrutiny on future IPOs, emphasizing the need for transparency among companies going public.

### Community Engagement in Investing

A silver lining from the WeWork situation includes heightened public interest and engagement in investing. With increasing accessibility to information, individual investors are becoming savvier, scrutinizing financial documentation more closely, marking a shift towards more informed investing practices.

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## Looking Ahead: Key Trends and Predictions for 2020

As we advance into 2020, several trends are expected to dominate the investment landscape. Chris, Andy, and Jason addressed some of these sentiments, emphasizing the need to focus on both current and emerging technologies.

### Augmented and Virtual Reality

Jason highlighted the growing significance of augmented reality (AR) and virtual reality (VR), noting their transition into mainstream applications. As businesses move toward experimentation with AR for enterprise solutions, the tremendous growth projections suggest that we are only beginning to scratch the surface of AR's potential. IDC forecasts an 80% increase in spending on AR and VR technology for 2020.

### Small Cap Market Potential

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Andy emphasized the appeal of small-cap stocks, especially in the current environment of low-interest rates. Many institutional investors have largely focused on large-cap stocks, leaving potential opportunities within small-cap markets that may provide attractive valuations and high growth prospects.

### Regulatory Scrutiny on Big Tech

As large tech firms face increased political scrutiny—especially in the wake of recent events—investors are anticipating potential regulatory repercussions. Companies like Facebook and Amazon may take proactive measures to counteract uncertainty, potentially spinning off parts of their businesses to mitigate concerns.

## Stock Picks for 2020

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As the panel discussed potential investments, their interest in future stock performance became evident. Here are a few notable recommendations:

### Wayfair (W)

Jason expressed optimism for Wayfair—a company achieving solid revenue growth and customer retention, despite facing some pricing challenges due to tariffs. Wayfair is anticipated to recover significantly in 2020.

### Globant (GLOB)

Andy praised Globant, an IT services technology consultancy experiencing rapid growth through digital service offerings. The company is well-positioned to capitalize on the high demand for IT solutions, making it a strong investment candidate.

### Adobe (ADBE)

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Jason also underscored Adobe, celebrating its influential role in creative software. The company's expansive growth strategy and solidly managed financials position it well for the future.

### Shopify (SHOP)

Andy regarded Shopify as a promising investment, indicating that the growing entrepreneurial economy will benefit the company long-term, providing a substantial market opportunity.

## Closing Thoughts

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Amid a recovering market, investors can find encouragement in the potential of various sectors, from small caps to AI technologies. The spotlight on company transparency and effective engagement in the investment community suggests a promising start to 2020. As investors prepare for a year filled with uncertainty and change, staying informed, flexible, and ready to adapt will be key to navigating the market landscape successfully.

**For additional insights, viewers are encouraged to explore Motley Fool's offerings, including top stock reports for further analysis in the coming year.**