Emerging Markets Stocks, US Stocks, Technology, Federal Reserve!

Dear Reader,

The US stocks rally continues. I forecast 5-10% upside in the main indices DJIA, Nasdaq, S&P500 in 2017.

US technology stocks are basically pricing much growth in the industry, which is not impossible, given the fast development of mobile, cloud services and Artificial Intelligence.

I forecast the yield on the 10 year treasuries to finish the year closer to 2.50% than 3.00%. The Federal Reserve is to hike only once the Federal Funds Rate in 2017.

China looks interesting within the emerging markets. Brazil also seems to recover driven by accomodative central bank and the recent rise of the price of oil. Russia could do well driven by the realtively higher price of oil. India has excellent growth prospects. South Africa rides the resurgence of Africa.

Basically the BRICS emerging countries and Eastern Europe should do well, even though the Federal Reserve is in a hiking cycle!



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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