Looking at the Bigger Picture

Nicholas Forsyth

Market Matters

The second part of this morning's report is once again touching on our big picture view that equities will experience a poor 2016 /7 led by the US. The reality this time is around QE and low interest rates that have pumped up asset prices. Basically, the system has been flooded with money which, not surprisingly, has been the major contributor to the increases in asset prices. Either this QE will stop shortly, perhaps after a last hurrah this Thursday by Europe, or economies will continue to struggle with confidence ultimately being lost in the Central Banks - both bad for equities. Short term, we have a preference that equities in the US will make fresh all-time highs BUT we are more confident that the S&P500 will be ~1500-1600 in the next 12 months i.e. +20% lower. - see Chart 3 below. Hence, Market Matters intention is to continue increasing its cash position over coming weeks / months. Our full report reviews our strategy on FMG (VIEW LINK)

1 topic

1 stock mentioned

Nicholas Forsyth
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.