Paul Mampilly said that it was extremely difficult to predict what was going to happen in the year 2018, and he thinks that it will be very similar in the year 2019. The year will still bring turmoil, novelties and opportunities, and experts like Paul Mampilly are here to help us navigate our way through them so that we can move toward a better future.
Paul Mampilly got a good start in the financial industry when he joined Bankers Trust as an assistant portfolio manager in 1991. It didn’t take him long to outgrow that position, and he was promoted to manage accounts worth millions of dollars for ING and Deutsche Bank. After he was recruited by Kinetics Asset Management to manage the company’s hedge fund, Barron’s listed it as one of the “World’s Best” hedge funds because Paul Mampilly managed to realize 26 percent returns every year.
Paul Mampilly further distinguished himself as a financial guru after The Templeton Foundation invited him to join its prestigious investment competition. He took on the challenge with a $50 million account that he increased to $88 million by the time the competition was over. The remarkable thing is the fact that he generated the return in just one year, and that was during the 2008 and 2009 financial crisis. Others have noticed that Paul Mampilly is someone who knows his craft well, so he has been featured on financial television shows on Bloomberg TV, CNBC and Fox Business News.
Economic and Political Predictions
First, Paul Mampilly believes that people will make deals reluctantly in the New Year. Problems have been presenting themselves since 2016, but Paul Mampilly thinks that they are going to be resolved with expediency. That’s because economic calamities are a real possibility.
Second, the legislature will be able to get back to work again. The House will not be under the thumb of the Freedom Caucus, so Senate Majority Leader Mitch McConnell will be able to work with House Speaker Nancy Pelosi on several issues, including an infrastructure bill, immigration reform, spending and a farm bill. There may even be a concession on the border wall from Mrs. Pelosi.
Third, the British aren’t any closer to working out a deal on Brexit than they were last year. Next year, they will announce a deal that will address the most pressing issues, including the right to work for EU nationals living in Great Britain and the border with Northern Ireland to ensure that the markets remain stable. Paul Mampilly also expects Theresa May to win a parliamentary vote, but a second referendum will not take place.
Fourth, President Donald Trump’s trade war will continue to keep tensions high between the U.S. and China, so the U.S. GDP will slow down to 2.75 percent. The fact that the presidential election will be coming up and farmers and small businesses will be hurt in this economy will cause the democrats and the republicans to begin negotiations. They will come to a deal that both can agree on, and President Donald Trump will congratulate himself on solving a problem that many people believe that he created.
Fifth, cities like Los Angeles, Atlanta and Detroit are going to be the “lands of opportunity” for wealthy investors. Individuals and investment firms are going to be able to invest money in areas such as the ones mentioned above and receive generous tax breaks for doing so. Because of this investment, these three cities and others will see businesses come to their shores, housing prices increase and jobs created.
Sixth, by the time 2019 ends, the price of oil can be expected to be $80 per barrel even though economic growth will be slower. Shale producers in the United States will be happy to have this occur because in order for them to break even, they need oil prices to be at least $60 per barrel.
Seventh, tensions between China and the United States and worries about the possibility of inflation will cause many people to be very concerned about the economy. These worries will end with several rallies that cause the stock markets to be a little lower than they are today.
Eighth, economic growth will slow down, but the Federal Reserve is going to raise rates three times in the next year. By the time the year is over, rates will have reached the level that they were at in 2008.
Ninth, home prices have been increasing between 5 percent and 7 percent throughout this decade, but this will stop in the year 2019. The reason will be because prices are too high and the fact that mortgages will be so expensive.
Tenth, Obamacare plans will begin to be profitable. Americans are no longer required to purchase health insurance, but 12 million Americans did exactly that last year. Centene is one insurer that has benefitted from the law while the market was becoming more stable. In 2019, this company will offer ACA health plans to Americans in 20 states, and Cigna plans to do the same thing. Newer companies are seeing that there is money to be made with ACA plans, so they are going to be joining these already established companies by offering their own products to the market in the coming year.
Business Predictions
Along with the aforementioned predictions, there are also business trends that Paul Mampilly believes investors need to be aware of in the New Year. New businesses have been paying attention to the user experience, and they are delivering what their customers say that they want from them. These customers have plenty of options, so businesses need to offer them personalized service, but they must be prepared to offer it quickly. Because newer companies have been able to do this better than the more established companies, the newer companies have been attracting the older companies’ customers.
People have been predicting that the human being is not going to be as important in the workplace, but this is not going to turn out to be the case. Artificial Intelligence is not going to replace human beings in the year 2019; it will only augment the experiences that current customers are having.
This doesn’t mean that technology isn’t highly important to people, but businesses survive because business owners nurture relationships between themselves and their customers. So, they will continue to nurture these personal relationships in order to build trust. For example, it will be critical for business owners to give their customers more than one way to get in touch with them.
Businesses have been personalizing their advertising, and Paul Mampilly thinks that this is going to continue. This means that business owners will forgo the impersonal calls, generic sales campaigns and stock images. Instead, they will offer customers greater value that is highly personalized at every step of the sales process.
One of the more popular ways to personalize one’s messages is to engage in an email campaign, and more people are going to be taking advantage of this method in the New Year. This will have the effect of making customers feel special because businesses are sending them personalized emails right to their inboxes. When companies use this strategy, their click-through rates increase by 97 percent; their open-rates also increase by 26 percent.
User reviews have become useful to businesses as the internet has grown to become an important shopping tool for everyone. Before customers make a purchase, 95 percent of them consult the online reviews. If there aren’t any reviews at all for a product, 90 percent of customers decide not to purchase it. Therefore, customer reviews will be the main reason that people decide to make a purchase next year and beyond, and businesses intend to take advantage of this by placing their marketing campaigns in review forums.
Large companies have been advertising on Facebook, but small businesses have not. That is about to change in the New Year. So many people will begin advertising on Facebook that advertising rates will rise. Those who begin to engage their customers in a live campaign will reap even greater benefits because the old days of posting photographs and updates aren’t working.
Paul Mampilly’s Recommendations
Paul Mampilly writes his Profits Unlimited newsletter in order to offer investment advice to his readers. Currently, he is recommending that his readers purchase stocks in the financial, medical and energy industries.
Related: Paul Mampilly Encourages Investors To Focus On The Internet Of Things
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