The dow is heading lower and lower, but I believe within the next 1 and a half to two years (once corona is over and hopefully they make China pay compensation for the viruse's damages) it will go up along with the S&P and the US market as a whole really...
As of now, the way I see it is (and I might be wrong) that investors are:
1. Losing faith and confidence in the stocks.
2. Worried that the trade war and tensions between US and China will surge.
3. China does not pay compensation to the whole world for damages.
4. Slower economic growth is extended (and deeper negative growth i.e shrink in the economy of some developing countries).
5. Uncertainties about next US president.
So with that, I think investors will actually turn to more safe Haven investments (US Treasury bonds and government bonds in general, as well as bonds of giant corporations) including gold and other commodities . Moreover, they would turn to deregulated investments (i.e cryptos) and so prices of those investments should surge (as they already are). Also, the halvening (or halving) process of Bitcoin (which is basically splitting Bitcoin into half every four years) is gonna happen next week. What this will do is basically increase the supply of Bitcoin in the market, BUT at a slower pace than before hence causing a surge in it's price.
As of now, the way I see it is (and I might be wrong) that investors are:
1. Losing faith and confidence in the stocks.
2. Worried that the trade war and tensions between US and China will surge.
3. China does not pay compensation to the whole world for damages.
4. Slower economic growth is extended (and deeper negative growth i.e shrink in the economy of some developing countries).
5. Uncertainties about next US president.
So with that, I think investors will actually turn to more safe Haven investments (US Treasury bonds and government bonds in general, as well as bonds of giant corporations) including gold and other commodities . Moreover, they would turn to deregulated investments (i.e cryptos) and so prices of those investments should surge (as they already are). Also, the halvening (or halving) process of Bitcoin (which is basically splitting Bitcoin into half every four years) is gonna happen next week. What this will do is basically increase the supply of Bitcoin in the market, BUT at a slower pace than before hence causing a surge in it's price.