Name: 5 Stocks To Buy In 2020 To Get Rich In 2021
Uploaded: 2020-12-15T19:16:53.000Z
Duration: 11 min 21 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of manner

2020 has been so bad that everyone is just eagerly waiting for it to end and expecting

Every worst possible scenario has happened this year, starting from a climate change

disaster that killed over 500 million animals in Australia to a pandemic that shat down

the world to an election that was chaotic, to say the least.

But not everything was as bad as it might seem.

Despite the stock market crash at the beginning of the year, the market had one of the best

Some companies just crashed it and grew faster than they did in an entire decade prior to

It's not the end of the year, and amazon's stock price has almost doubled.

Elon Musk went from 20 billion dollars at the beginning of the year to over 100 billion

In fact, we made an entire video about the list of people who became billionaires as

Whoever took advantage out of this year, hats of to them, but what we want to find out in

this video is how the stock market will perform next year?

Which stocks will most probably rise, and which ones would fall?

And finally, will there be any Signifincant crash?

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To understand how the economy is going to perform next year, we have to find out how

the economy usually performs after a crisis.

You probably have heard that whatever rises will definitely fall.

 The economy has four main stages, and it starts with expansion.

It peaks somewhere at the top and plummets, which is also know as contraction, and once

it reaches the lowest point, it rises again.

During the expansion period, the economy is booming.

The stock market is rising, and it seems like the growth will be forever.

Interest rates are low, and Businesses are borrowing and expanding as fast as they can.

Investors are throwing their money at the stock market, and everyone is happy.

At some point (peak), the central bank is going to say, "mmm, inflation is growing too

So the FED will increase interest rates to keep inflation under control.

 The economy has reached its full potential; it stabilizes and grows just enough to cope

But investors are used to extraordinary returns.

For instance, iPhone sales have been increasing since 2009, however in 2015, they slowed down

and stabilized since the economy wasn't growing fast enough.

That scares off investors, and some of them slowly start pulling out their money.

Businesses will do their best to maximize their sales to keep investors interested;

however, at some point, the supply will outweigh the demand.

So businesses slow down, that pushes away investors, which slows down further the market,

but businesses have somehow to survive, so they will start cutting cost. 

First, by firing the least important employees, so unemployment starts rising, which means

the demand starts falling in the market overall.

Businesses can't even take a loan since interest rates are too high since the fed increased

That's how the economy slides into a recession (contraction).

People start to save since they are afraid and uncertain about the future, which means

the demand in the market falls even further, which means more businesses suffer, which

It's a never-ending cycle that will keep drugging the economy down.

Usually, the Fed intervenes by lowering interest rates to make borrowing money free to save

But it doesn't always work instantly, and the economy keeps declining.

At some point, the economy is going to reach its bottom line (depression).

People are afraid to borrow because the economy looks so bad that they don't seem to be able

In that case, the central banks will do what the Fed did this year "quantitative easing,"

that's just a fancy word for printing money.

Businesses will take that money and hire people.

Investors would see that the economy is slowly recovering and will start investing.

The economy will return to the expansion stage, and the same cycle will repeat over and over.

If we can find out where exactly we are in this graph, we can at least have an idea of

Back in 2015, the Fed started increasing interest rates because the economy reached its peak,

but then in 2018, the Fed lowered interest rates because the economy was sliding into

 Even the global GDP growth slowed down year by year.

In 2017 it was 3.1 percent, but in 2019 even before the pandemic, it fell to 2.4 percent,

We had Brexit, the trade war, and many other issues that slowed the economy.

But the final knockout out was the pandemic because it literally shut down businesses,

prevented consumers from spending, and left millions unemployed.

The economy immediately fell into a recession.

It wasn't clear how long the recession is going to last since the future seemed very

But central banks stepped in and lowered interest rates to make borrowing money free, printed

trillions of dollars, and made sure to put the money into people's hand so that their

spending does not fall and get the economy out of this recession as soon as possible.

But most importantly, create an approved vaccine by the end of the year to bring life back

The economy is still in a recession, and the GDP is going to shrink by 3.4 percent this

However, the economy seems to be moving from recession back into the expansion period within

the next year once vaccination will be widely available.

Whether you trust vaccines or not, that's a story for another time, but feel free to

let me know your opinion in the comments below.

That's why most economists predict a 3.4 percent GDP growth next year, which is very reasonable.

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5 Stocks To Buy In 2020 To Get Rich In 2021

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