March Stock Market Forecast- Should You Invest This Month?

The war between Russia and Ukraine is escalating with no hope in sight. In such a scenario, investing in the stock market might feel risky to some investors, while others might consider this an investment opportunity. Our March stock market forecast tries to answer the question of whether you should invest this month.



Energy Supplies Matter More

As the oil prices are soaring due to the Russia-Ukraine war, every investor needs to consider global energy supplies into account while they invest. Some might even invest in oil stocks as oil prices of more than USD 90 will bring free cash flow and several other benefits for these companies.

Changing Outlook

Many stock market forecasters are changing their outlook for other reasons than the ongoing war. A big issue is that the Democrats' spending bill was canceled, and they need to redraft it completely and reintroduce it after a few months. The supply chain issues caused by COVID-19 and restrictions are easing, but global shipping is not completely free of COVID-19 woes.

Forecasts for the S&P

According to a forecast by Bank of America, the S&P will be flat next year and might rise only to 4600. However, it has already hit a record of 4799.

Goldman Sachs has predicted that the S&P 500 will rise to the level of 5100 By the end of this year. Similarly, Goldman Sachs is printing that S&P gain might be 5050. Morgan Stanley has predicted that S&P might drop from 4500 to 4400 over the next 12 months.

The Rays of Hope



Another hope that might boost investors during these tough times is that the Omicron threat is reducing. Omicron might pass by spring, and if it does, it would be a great boost for the global economy.

Even the housing market forecast is brighter as the pace is expected to be faster than before. More construction is also expected. Some experts are bullish on housing construction stocks.

As people have lots of cash, holiday spending has hit new highs. When the COVID threat goes away, the pace of spending, employment and production is expected to rise.

Supply chain issues are also going away with time, and the administration of booster shots will make a return to work easier for everyone.

Should You Expect a Stock Market Crash?

If we have a realistic outlook, a stock market crash is highly unlikely currently. Still, it is wise to pick stocks that can survive a crash. Also, if a crash happens, you should be prepared for it. You can hedge a crash by smartly managing your 401K, RRSP, or IRAs.

Investing Strategy for March 2022



There is no simple answer to should you invest this month. But if you are inclined to buy shares or invest in stock markets, you can pick up stocks after the prices decline further. Pick international stocks because foreign markets might outperform the US market this year. You should also find some deals on the stock with a market capitalization of USD 50 billion or less. If you do that, remember that they are meant for long-term holdings.

Another smart strategy could be doing nothing and letting the insert entities pass the time. Also, avoid panic selling as much as you can. It will ensure that you have good long-term returns. Happy investing!

Sources:

https://www.forbes.com/advisor/investing/stock-market-outlook-and-forecast/

https://www.nasdaq.com/articles/top-stock-market-news-for-today-march-2-2022

https://gordcollins.com/stock-market/factors-forecasts/

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