Fasten your seat belts - Charlie Aitken

Fasten your seat belts - Charlie Aitken. I am increasingly concerned that cracks are appearing in US equities and Wall St itself will become the next trading victim of the resurgent US Dollar and an increase in volatility. On that basis I am going to issue a correction warning on US equities this morning. What will be the catalyst for this correction? My answer is consensus US earnings downgrades driven by the strong US dollar. When EPS downgrades come through in multi-nationals, large cap tech, and US oil majors in particular, which have heavy equity benchmark index weights, I think it will be the trigger for a multi-year profit taking correction. I am again backing my market instincts on this and positioning for the now long-overdue Wall St correction as the Fed ends QE and starts the process of cash rate normalisation. In terms of value I reiterate the only clear value I can see is the US Dollar, Volatility and Chinese equities.