High yield bonds (funded by multiple rounds of QE) will definitely put pressure on the global financial system this year. I believe over $1 trillion of QE went into energy related bonds (in US and Europe), and nobody had thought of $30 oil plus strong US Dollar. Euro and Rupee/INR will be at risk from a stubbornly strong US Dollar. Zero debt companies with substantial earnings in USD like Google, Infosys, McDonalds maybe the safest places in market in 2016. Stay long on USD. Energy and Materials stocks should be handled only by advanced traders. There maybe many sharp corrections and short-covering rallies.
Tag Archives: USA
Markets Review – 27March2015
US Markets: The US markets opened lackluster on Monday morning and remained in profit booking mode throughout the weak. Investor sentiment was jittery on the back of better than expected domestic data thereby reviving possibility of an early rate hike by US Federal Reserve and geo-political headwinds. On the macroeconomic data front, a report from the US Commerce Department showed that new home sales grew 7.8% to an annual rate of 539,000 in February (analyst expected it at 462,000). US consumer price index increased up 0.2% in February 2015 after falling by 0.7% in January 2015. A report from the US Commerce Department mid-week also depicted an unexpected drop in durable goods order in Feb 2015 (down 1.4%). US initial jobless claims fell more than expected for the week ended 21st March 2015. Initial jobless claims fell to 282,000 from the earlier week levels of 291,000. Continue reading Markets Review – 27March2015
Global Markets Review -16May2014
The US markets opened on a strong footing after a mixed performance the previous week. The strength on Wall Street was partly due to news of Chinese market reforms designed to increase liquidity, which helped offset concerns about the situation in Ukraine where Pro-Russian separatists in the Donetsk region of eastern Ukraine claim nearly 90 percent of voters in the region were in favor of self rule in a referendum held on Sunday, although the vote has been condemned as illegal by Kiev and Western governments. However, weaker than expected retail sales growth for the month of April and higher than expected increase in producers price index. The US markets closed the week (till Thursday) on a negative note ahead of the housing starts and consumer confidence data releases even as the jobless claims data came below estimates. Continue reading Global Markets Review -16May2014