Financial market forecasting mostly deals with the forecasting of the money as well the stock market. This type of forecasting is founded on certain principles, models and theories in order to analyze it and forecast what the future of the financial market will be. This kind of analysis will help you predict your financial future well and help you manage your finances so that you don’t have to go for options like consolidation and settlement to get rid of your monetary situation. This article provides you with information you need to know about the financial market forecast of 2012.
Factors affecting financial market forecast
Here some of the deciding factors you need to know regarding your financial market forecast.
- Interest rates
- Corporate profits
- Short interest ratio
- Index prices
- Volume of trading
- Money supply
- Industry index price
- Mutual fund flows
Financial market forecast of 2012
Here is a prediction of the financial market forecast of the two essential components of the financial market that is the housing market and the stock market.
1. Housing market – The housing market in the recent times have been tumultuous with the existing home sales have reduced to a cyclical low in July and the new homes also followed the same. It has been further predicted that there can be another 8% drop in the third quarter of 2012 in the home prices. However, it is predicted that home buying activity may increase a little in Financial market forecast 2012. Home prices may lower down in the first quarter of 2012. Analysis also shows that the mortgage rates may slightly increase and may reach or exceed 5%. However, the biggest drawback is considered to be the prevailing unemployment in the housing market.
2. Stock market – During the late April to May 23rd 2011, the stock market fell almost upto 12%. Stocks Financial market forecast can be predicted on the basis of their past history and it is essential to keep a track on the stock market prediction as it may help you prevent yourself from making wrong decisions. However, it has been predicted that consumer good stocks may perform better than stocks in other sectors. The consumer goods companies usually supply such products that are necessary in our daily lives and thus, there is a constant demand in this sector. The construction stocks are the best stocks to invest in now and if you invest in the big names in the infrastructure, capital goods and engineering sectors you may profit considerably. Investing in bank stocks can be a wise idea as there is an increase in loan books and there is always a consistent customer demand.
Thus, follow these Financial market forecast predictions and prevent yourself from making any unwise financial decisions. This will ultimately help you make stable monetary moves and prevent you from falling into any sudden financial crisis.
