Contrary to popular opinion, there will be news other than the presidential election this year. Below are a dozen trends that will impact businesses in 2020 and beyond:
1. Consumers Still Spending
While the U.S. economy will grow modestly (2.5%) in 2020, consumer sentiment is still strong. With consumer spending representing two-thirds of the U.S. economy, business-to-consumer companies are still performing well. According to CBRE, online sales will grow another 14% in 2020. Interest rates are at an all-time low, and home sales spiked at the end of the year. Because of this, I believe 2020 will be a strong year for consumerism.
2. Streaming Wars
What happens when four S&P 500 companies launch a product into a crowded sector at the same time? A streaming war.
According to Bloomberg Businessweek, the average consumer will subscribe to three to five streaming services. From my perspective, this could be bad news for Netflix, which had the first-mover advantage but is now subject to new competition from Disney+, Apple, Amazon and others.
3. Tech Under Attack
Once the darlings of Wall Street, tech stocks are under fire. In Europe, Facebook, Apple, Netflix and Google are under attack by EU regulators over privacy, and here, we’re seeing some politicians propose antitrust action. In 2020, the California Consumer Privacy Act will come into play, which I believe could be a preview for what is to come at the federal level. Look for more breakup talk during the presidential election.