Where To Invest In 2019

Making money in stocks won’t be a walk in the park. You’ll need some protective armor to shine in a market facing a thicket of risks.

- Anne Kates Smith

At this stage in the stock market’s long, historic run, investors might want to start thinking of the market a little differently—as a bear in a bull-market suit, for instance. That’s not to say that the bull market is over, just that the bear might be closer than it appears, and that it’s time to prepare accordingly. That means you’ll need to suit up in 2019, too, donning some defensive armor to survive and thrive in a market facing increasing risks. // For now, the financial backdrop still supports stocks. The economy will keep growing, albeit at a slower pace; corporate earnings will increase as well, if not as briskly as before. The cloud of uncertainty that hung over the midterm elections has lifted. “The overarching message is that the economic and investing environment is healthy, but it’s becoming less favorable,” says David Joy, chief market strategist at Ameriprise. CFRA chief investment strategist Sam Stovall says, “I’m a bull, but a bull with a small b.”

That describes our outlook to a t. We see moderate gains for stock investors in 2019, with more volatility and no guarantee that the market will finish in December at the high point for the year. In other words, gains in the market may not be linear or monolithic— you’ll have to choose carefully and rebalance your holdings religiously as different market sectors and investing styles seesaw throughout the year.