I believe that the simplest investments for 2020 are going to be Bitcoin, Gold & Silver.
I strongly believe that the stock market will crash in 2020. Not really the kind of thing you would want to hear right at the start of the year, is it?
Looking at the S&P500 chart, it's clear that we've been in one among the longest economic expansion period since the last crash in 2008. The charts look extremely over-extended and badly due for a correction.
There are also other indicators that has flashed warnings of an imminent crash, such as
Yield Curve Inversion(historically the most reliable indicator of recessions)
ISM Manufacturing/New Orders(PMI) falls below 50
More than 10 years of economic expansion(historically rare)
Insane stock buyback amounts
Stock markets are at all time highs and the general sentiment is euphoria
FED pumping billions into financial system
Sorry to be the party pooper, but general euphoric sentiment tends to be a strong indicator of the top of a market cycle.
To add on, it is literally a fact that the market is being artificially inflated by the FED. The Fed's monetary juice has tied on to the increase in stocks: 'Here we go again'
However, the FED believes that the economy is doing perfectly fine and that there is only a little chance for a correction. Hmm, let's see what the big players are doing instead of what they are saying.
Warren Buffet(most successful investor of this generation): Has record $128B in his cash pile, doesn't want to invest it into anything
Ray Dalio(CEO of biggest hedge fund, very successful investor): Bets $1B that the S&P500 is going to fall by March 2020
With such doom and gloom awaiting the stock market this year, I don't think any stocks or industries are a good investment in 2020, regardless of how amazing their fundamentals may be.
So enough ranting about a recession, your question was What will be the best investments for early 2020?
I believe that the simplest investments for 2020 are going to be Bitcoin, Gold & Silver.
Firstly, Bitcoin. 2020 are going to be a tremendous year for Bitcoin, no matter whether a correction occurs or not. It has its halvening arising in May 2020, where Bitcoin's rate of inflation is cut in half. This will cut Bitcoin's supply(from miners) in half, while demand remains an equivalent , or rather, like after the previous 2 halvenings, demand increases exponentially. With lesser supply and greater demand, there's just one way Bitcoin's price can go.
I predict that by the top of 2020, we'll be testing resistance at Bitcoin's previous ATH levels of 20k. With it's current price of 7k, that would mean a 185% increase by the end of the year. Not too shabby.
Bitcoin is also not correlated to any other asset classes, so it can serve as a good hedge against the upcoming recession.
Next, Gold and Silver. This is really a no brainer if you actually do accept as true with my idea of an upcoming recession. Gold and Silver soar during recessions and it is the first thing investors rush to when there is a recession. Though a 185% increase is unlikely for them, they need proven to be amazing investments during recessions, unlike Bitcoin which hasn't been through a recession yet.
However, i'm optimistic of Bitcoin's potential during a recession. Once a recession kicks in, quantitative easing begins and the central bank's money printing machines starts printing like never before.
Lower/Middle Class people may start to understand that they need given the central banks an excessive amount of power, that the central banks can effectively control the worth of all the cash in the world, that their money is depreciating in value, that they are indirectly giving their money to the rich, that they should use a more decentralized method of payment/storage of value, and buys Bitcoin
Upper Class people knows that their wealth will depreciate in value if they keep it in fiat, that they ought to live their money from their over-extended, artificially pumped stocks of companies that just buys back their own stocks with their revenue, which have been performing very well so far, in preparation of the recession coming up in 2020, and buys an asset that is not correlated to the market, and can multiply their wealth in an order of magnitude that has never been seen in any other asset class by the end of the recession, which is Bitcoin.
All in all, i think that Bitcoin, Gold & Silver has great potential to be the simplest performing assets of 2020.
Just my 2 cents. Not financial advice.
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