Finance and Investment Trends You Can Expect in 2020

Finance and Investment Trends You Can Expect in 2020
03 Feb 2020

Between the presidential election and the steady growth of the stock market, we’ll see positive finance trends in 2020.

Investment trends this year include a potential big win for retirees, a stable stock market, and little to no changes in tax legislation.

With economic stability, the future of finance is looking good overall this year. This guide has all of the financial industry trends you’ll want to watch for in 2020.

You Will See Positive Results From Your Investments

With a banner year for the stock market in 2019, it could be hard to believe that we could see more growth in 2020. With low interest rates and steady economic growth, investments could keep riding the positive wave from 2019.

Typically in presidential election years, we’ll see stocks fair favorably. Research from Standard & Poor’s 500 showed that 19 presidential election years out of 23 had high performing stock market years. 

Diversified Biotech Activity Will Continue

For many investors in 2020, biotech will still be at the forefront. With several mergers and acquisitions happing in 2019 and more to come in 2020, large pharmaceutical companies will be looking to make up revenue this year.

With drug price control looming and patents expiring, some large pharmaceutical companies will need to replace revenue. This will likely come with more acquisitions of smaller biotech companies that have new drugs in the last stages of FDA approval.

There Will Be Help for Retirement

While many Americans may not have enough saved for retirement, this could change if the SECURE Act comes to fortition.

Typically, when someone doesn’t have enough retirement income saved it is because they weren’t able to save enough, they withdrew money early, or they didn’t have a 401(k) plan through work.

This legislation may be able to help make retirement-savings a reality for people who work part-time or small business employees who don’t have an employer-funded plan

This act uses economies of scale to make access to 401(k) plans easier for small businesses through employer incentives.

Additionally, this act will make annuities in the workplace 401(k) plans available as well. An annuity will help set guaranteed lifelong income.

Debt Will Linger

Even being 10 years from the economic recovery, many Americans are still living paycheck to paycheck and barely getting by.

With too much debt, people are left with no emergency funds and very few long-term investments.

For people without an emergency fund, the stress of an unexpected expense may hinder their desire to fund investments and save for retirement.

In 2020, many Americans may still be in the same boat.

Tax Action Not Likely

Despite all of the talk, it isn’t likely that a major federal tax bill will come down in 2020. Because of the presidential election, a Congress that is very divided most likely won’t be able to pass anything this year.

We will, however, hear a lot about taxes and tax change proposals in the coming months as we near the election. While many of these tax proposals won’t come into reality after the election, it isn’t out of the question.

Investment Trends to Watch for in 2020

With an upcoming election, 2020 will be a year to watch in terms of investments. Investment trends this year include a nice bump for retirement plans and a stable stock market. 

While the economy may remain stable in 2020, many American’s won’t see a budge in their debt this year. 

We will see a lot of action on the biotech front as pharmaceutical prices change and companies continue to merge and purchase one another. 

If you’re ready to speak with a professional financial advisor about your 2020 investment plan, and what these trends mean for your portfolio, fill out the contact form here to get started.


Daryl Seaton