The ASX200 and world equities continue to rally, supported by interest-rates at historically low levels

Nicholas Forsyth

Market Matters

The ASX200 and world equities continue to rally, supported by interest-rates at historically low levels. It's extremely easy to find excuses to buy equities today, interestingly nothing has changed over the last 3 months apart from the ASX200 has rallied over 15%, this after the RBA sent a clear signal by cutting interest-rates for the first time in 16-months. I remain positive equities over coming weeks/months but investors should be open-minded to changes in sentiment, currently it's all bullish, but this can change quickly and there no clear signs at present. With ~$2trillion in European sovereign-debt offering negative interest-rates, the free-money will be around for a while even if/when the US Fed starts raising rates. The DOWJONES has rallied +180% in 6-years with zero interest-rates being an enormous driver. During this time, we had three decent pullbacks, but are very minor in the scheme of things, but can present magnificent opportunities. With interest-rates in the USA likely to be raised in 2015 and many wildcards on the horizon, I remain confident of a 10-15% correction in US equities this year. (VIEW LINK)


Nicholas Forsyth
Director
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...

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