Bonds, Stocks, Commodities and Foreign Exchange!

Dear Reader,

I think the rally in US treasuries has run its course. I believe the 10 year US treasury yield could finish the year closer to 2.50% than 3.00%.

US stocks measured by the main indices DJIA, S&P 500, Nasdaq Composite should post gains of about 5-8% this year.

Some of the bubbles in tech stocks have popped(Twitter, Fuel,DDD, Group On etc.), but generally the rally in tech stocks is still intact driven by smartphones. Artificial Intelligence could prove the next boost for the technology sector.

Chip hardware companies like NVIDIA and AMD stand to benefit from the resurgence of artificial intelligence.

US WTI Oil should remain locked in a tight range of 50-60 USD in 2017. Gold should test 1300 USD but the limit would not be broken decisively.

I believe the yield on benchamrk 10 year German bonds should fall back closer to 0.00% in the first quarter of 2017 driven by European Central Bank bond buying and political uncertainty in the euro area.

EUR/USD should test 1.00 in 2017 and even break below it and should finish the year close to 1.00

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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.)!


Kind regards,
Petar Posledovich