The Hidden Recession That Everyone Is Overlooking
To say that the stock market has some big shoes to fill in 2020 would be quite the understatement. In 2019, the benchmark S&P 500 (SNPINDEX: ^GSPC) gained approximately 29% (approximately 32% after adding dividends), which is more than four times higher than its historic annual average return of 7%, which includes dividend reinvestment and adjustments for inflation. Patient, long-term investors were handsomely rewarded.
But at the same time, worries continue to manifest about the potential for a U.S. or global recession. We're in the midst of the longest economic expansion in U.S. history, suggesting we're more likely to be in the late innings of this expansion than the middle.
We also witnessed a brief yield-curve inversion of the 2-year and 10-year U.S. Treasury note in late August, which is often indicative of an upcoming recession. And overseas, we're liable to see Brexit finally take place, which could put stress on an already slow-growing European market.
Source Fool.com
