Stock markets are unpredictable from one year to the next. It is hard to know what the future holds when it comes to these markets. In 2015, the year started very well for the stock market and went on without a hitch for the first seven months. Things changed in August through to October when a mini-crash hit the markets.
It was not that big because the markets recovered well even though the investors didn’t recover. They instead became worried and developed a negative attitude. When oil prices fell to prices that have never been seen before, investors became sceptical of the future of the markets.
Goldman Sachs and others explained that oil prices were expected to fall even lower. It only added problems to already worried investors.
Domino theory about other parts of the economy being hit did not help raise the confidence of investors towards the market, that at this point looked like it was moving from bad to worse.
Investors and analyst do not have a lot of hopes in the market based on the current situation of the market where it seems to be stuck on a plateau. They expect this trend to continue in 2016.
When it comes to buying stocks, it is important to note how the stock markets are looking. In the event of a weak market buy safe stocks that have nice dividends and are valued conservatively. When stocks move from poor to giving good returns, this is the time to buy stocks from successful growth companies, which will see their demands skyrocket. Stocks in 2016 are expected to be better than what was experienced in 2015.
One of the biggest players in the Stock market is Highlands Capital Management. James is the co-founder of Highland Capital Management, he went to University of Virginia and graduated with double majors in finance and commerce in 1984. Jim began working as an analyst in 1985.
Jim is the Chairman and Director of different companies. They include Nexpoint, American Banknote Corporation among others. In HCM, Mr Dondero is tasked with ensuring that the goals and initiatives of the firm are achieved.
The article is a recap from http://www.forbes.com/sites/johntobey/2015/12/31/how-2015s-flat-stock-market-boosts-2016s-prospects/