Now that September is in the books, it is time to again look back and recap how my stock market predictions for 2013 have done so far. The 3rd Quarter has ended. The finish line for the year is starting to come into view. Now is the time to push for the finish line.
Here is a recap of my financial market predictions for 2013 and how things have turned out so far during the first nine months of this year. We will see how the final three months of the year shape up.
Review of Stock Market Predictions For 2013
Here are my stock market predictions for 2013. I’ve included several other predictions than just a stock market prediction like companies going public, macro economic trends, etc. We will see how the year shapes out, and I will have two more recaps at the end of each quarter of the year as well.
- Stocks will continue their steady increase and surpass normal growth rate of an 8% gain again in 2013. The S&P 500 Index will end at 1,540 and the Dow Jones Industrial Average will finish this year at 14,070 on December 31st, 2013. - YES! Despite a few recent hiccups, the stock market continues its great run this year. The S&P 500 is up 255 points from its starting point of 1,426 to 1,681. That’s an increase of 17.8% year-to-date. And, this is after rising 13% last year! – Remember….This data is through September 30th, 2013. The Dow finished the third quarter at 15,129 which puts it up 15.4% so far this year.
- Apple will finally release a television set by Christmas 2013 and finish the year at $700 per share. - This prediction for 2013 looks horrible, and I’m really disappointed that Apple hasn’t come through on a true Apple TV product. Such a disappointment…just like their share price.
- Twitter will go public by the end of 2013. This one looks like it is most likely going to happen! The word on the street is that Twitter will file its IPO paperwork this week. Be sure to see why I bought a share of Facebook on the very first day it traded!
- Research In Motion (RIM) will be acquired. - This one is looking really good. I might have gotten this one right! Just last month, Blackberry received an offer for a buyout by one of its large institutional shareholders. We’ll have to see how the end of the year plays out.
- The price of Gold will finish flat for the year around $1,650 per ounce. - Gold continues to take a beating in the market this year. Not looking good for gold bugs.
Macro Economic Predictions For 2013
- Unemployment will finish 2013 under 7.0%. - Maybe, we’ll just have to wait and see!
- America will see a steady, healthy 3% inflation rate. - Maybe….maybe not. It looks like it may come in under the traditional 3%.
- The Federal Reserve will raise the Federal Funds Rate. – Definitely not. Still not looking great here.
- GDP growth in the US will be 3% in 2012. – We’re hanging in there!
- Congress will increase the debt ceiling and kick the can down the road more and not fix entitlement spending or reform the tax code. - Unfortunately, we are really feeling the affects of this one. The real danger is the debt ceiling debate. The debt ceiling deadline for Congress to act is October 17th. I still think that they will kick the can down the road instead of finding a permanent fix.
- The personal savings rate in America will continue to fall and finish the year at 1.0%. - Maybe, we’ll just have to wait and see!
- Mortgage rates will remain low - This one is starting to creep up more and more all throughout this year.
- Down payment requirements relaxed again – In 2013, the mortgage lenders will settle into requiring 10% or so for residential home mortgages for primary residents. - Not sure, probably not looking good for this one.
- Housing prices will stabilize and slightly increase - I think this one continues to have a real chance. Housing is slowly starting to make a comeback across the country. It is still market to market though in many areas of the country.
No one knows what the future holds, of course, but I thought that it would be fun to have a guess and make some economic and stock market predictions for 2013. Be sure the check back in December when I wrap up with a large recap at the end of the year to see where the stock market predictions for 2013 ended up. And, I’ll make new predictions for 2014.
What about you? How are your predictions for 2013 doing so far this year? Are you in the stock market during this great run? Or, have you still been sitting on the sidelines waiting?