The U.S. markets were up on the NFP news then they sold down. I think the prospect of a rate rise will cap the markets in the near term. We understand since QE officially ended that stocks have been propped up with cheap money used for stock buybacks. With the threat of a rate rise you could expect these positions to start to unwind. I don't see much upside at this stage. The bull market went for six years on the back of free money from the Fed. Six years is about the limit for a bull market. As I have been writing on my blog, this is a Shmita year. Every 7 years since the U.S. went off the gold standard, there has been serious turmoil in the financial markets. This year of Shmita ends September 13th 2015 so we will see what happens. I will post more about this as we get closer to the date. I wrote before the Shmita year started in September last year that we could see some turbulence in the market and that is exactly what happened. I am not a religious person, but I am very interested in market cycles. Just have to see how it goes.
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