Saturday 2 April 2016

Near Term Prospects for World Markets

Investors, please read this....

http://www.marketviews.com/rmg/time-to-be-bearish-again-as-the-reflation-trade-is-topping/

Here is the conclusion.

"So to conclude, we do not think the recent reflation trade is anything more than a very flashy rally that is now pretty much over. We remain of the view that the US and World economies are stuck just above stall speed at best, and are vulnerable to a new recession that would be triggered by falling asset prices. The bear market is likely to happen alongside a decline in corporate buybacks as profits continue to decline and the market pushes back on funding bond issuance purely to buy back shares resulting in higher and higher leverage."

I noted this same source on December 10, 2015, just before markets went into a nose dive, dropping in excess of at least 10% within 6 weeks.

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