Monday, November 23, 2015

Markets could drop 25 PERCENT from these levels



Deflation
We have disinflation or deflation almost everywhere in the world.
Europe is the biggest beneficiary of falling energy prices. US is not a beneficiary anymore due to being a net-exporter.

US Federal Reserve
This fed hiking cycle will be the shortest and shallowest on record. I think the Fed will be on hold and perhaps even cut rates this time next year.

Stock Market 
Ultimately I do expect to see a 25 percent correction in the equity markets from around here, maybe a little higher... marginally higher.