Bear Market in Stocks in 2016!

Dear Reader,

Global stocks went down since the beginning of 2016.

I forecast that US stocks will go into a bear market in 2016 as measured by a larger than 20% fall from the peak in the main indices DJIA, S&P500 and Nasdaq Composite. Then, there will be a buying opportunity especially in technology value stocks like Microsoft, Intel, Qualcomm and value banking stocks like Citigroup, Bank of America, JPMorgan, Goldman Sachs and Morgan Stanley.

EUR/USD to reach parity(1.00) in 2016. USD/YEN to fall to 110 despite the Federal Reserve tightening mode.

Oil to bottom out at 30 USD and reach 60 USD by the end of 2016. Gold to fall below 900 USD in 2016.

I expect the Federal Reserve to hike the Federal Funds Rate at least 3 times in 2016. I expect the 10 year US treasury yield to reach 2.70% in 2016. I forecast the yield on the German 10 year bund to reach 1.00% in 2016.

The European Central Bank will again disappoint investors in its march meeting by only lowering the deposit facility rate to -0.40.


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Conflicts of interest: I may possess some of the securities,currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!