FS Staff's picture

Economic growth in the U.S. will probably remain weak for another four years and interest rates are likely to fall even further, Gary Shilling recently told Financial Sense Newshour. The number one reason, he says, is “the overpowering reality of deleveraging″...

Chris Puplava's picture

Latest net foreign inflows to U.S. markets came in the highest on record as incoming data suggests U.S. economic growth to accelerate. The Russell 2000 and the junk bond market also appear to be stabilizing.

FS Staff's picture

As outlined on January 11th, we believed this year would again defy bearish forecasts and see instead: a positive gain for U.S. stocks, a strengthening dollar, lower commodity prices, and improving U.S. economic growth. Here’s how things have played out so far.

Chris Puplava's picture

The US stock market has displayed a strong rally off the October lows and has seasonal tailwinds at its back. However, near-term caution may be advised since we are starting to see some negative divergences in market breadth and the credit markets, suggesting a pause or pullback may be in the works.

Chris Puplava's picture

It's always a good idea to periodically take a look at what the foreign community is doing in terms of net US equity purchases. The reason lies in the fact that they tend to buy at tops and sell at bottoms and can serve as a contrary indicator...

Puru Saxena's picture

The recent turbulence in the stock market is behind us and a rally is now underway. Given the fact that we have recently entered the most favourable 6-month period of the U.S. Presidential Cycle, it is our contention that Wall Street will advance quite sharply until spring.

Cris Sheridan's picture

The persistent decline in the price of oil and commodities from mid-year until now has caught investors by surprise. Many market observers thought there was a $100 floor under Brent crude based on technical and fundamental supply-demand factors. Once that price level was broken...

Chris Puplava's picture

Given European growth is expected to decline well into 2015 we are likely to see another round of the Euro crisis occur which could derail strong bullish seasonal strength the U.S. market typically sees in the last two months of the year.

FS Staff's picture

Gary Dorsch of Global Money Trends expects the Dow and S&P 500 to hit 18,000 and 2100, respectively, between now and the end of January on strong seasonal market strength and a revived yen carry trade.

Urban Carmel's picture

The Federal Reserve's third "quantitative easing" program officially ended last week. Many traders hold the view that equity markets have become addicted to central bank stimulus and that the end of QE3 will therefore result in a significant fall in equities...

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