- 2016 will be difficult year for stock markets with very limited gains, similar to 2015
- Federal Reserve has started tightening monetary policy but bond markets will continue to see strong inflows
- Subsequent interest rate raises by Federal reserve will be at a very slow pace, yields on sovereign bonds will not move up rapidly primarily due to the safety perception of bonds compared to stocks
- Even though the U1 unemployment is dropping, wage growth continues to be low which is why inflation will be tame, expect energy, food and other commodities to be continue to be low
- Geo-politics will continue to make headlines throughout 2016. Russia is likely to maintain its gains in military diplomacy. Expect escalation of armed conflicts in Middle East.
- In light of these highlights, I recommend to buy ITA
- US dollar will continue to appreciate which will hurt foreign income of US based corporations
- HEWG seems to be an attractive option to play the currency differentials
- Prefer large caps compared to mid-cap or small-cap. I would just load up on DIA
- In the light of loose monetary policy in both Europe and Japan – there will be gains in stock markets. Best bet to play QE by central banks there is to buy IEUR and EWJ
- Cost cutting will dominate the earnings theme and technology sector seems to be still attractive
- Emerging markets, commodities and junk bonds do not seem attractive for 2016
- Don’t like stock markets? 2016 will be best year to buy a house! Interest rates will still be low and will real estate will offer better returns in long term
- Federal Reserve has started tightening monetary policy but bond markets will continue to see strong inflows
- Subsequent interest rate raises by Federal reserve will be at a very slow pace, yields on sovereign bonds will not move up rapidly primarily due to the safety perception of bonds compared to stocks
- Even though the U1 unemployment is dropping, wage growth continues to be low which is why inflation will be tame, expect energy, food and other commodities to be continue to be low
- Geo-politics will continue to make headlines throughout 2016. Russia is likely to maintain its gains in military diplomacy. Expect escalation of armed conflicts in Middle East.
- In light of these highlights, I recommend to buy ITA
- US dollar will continue to appreciate which will hurt foreign income of US based corporations
- HEWG seems to be an attractive option to play the currency differentials
- Prefer large caps compared to mid-cap or small-cap. I would just load up on DIA
- In the light of loose monetary policy in both Europe and Japan – there will be gains in stock markets. Best bet to play QE by central banks there is to buy IEUR and EWJ
- Cost cutting will dominate the earnings theme and technology sector seems to be still attractive
- Emerging markets, commodities and junk bonds do not seem attractive for 2016
- Don’t like stock markets? 2016 will be best year to buy a house! Interest rates will still be low and will real estate will offer better returns in long term
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