US, Global Economy, Russia, China India Stocks, Commodities!

Dear Reader,

The Federal Reserve hiked the Federal Funds Rate to 1.00%. The market and the United States central bank expect two more hikes in 2017, altogether three during the current year. I forecast just one more hike. The inflation data will worsen because of the current and future fall of the oil price. The US economy is growing with 1.5% per year. This is far from the economy's potential which I judge is about 3.4% year on year GDP growth.

Stocks have some further upside. The stocks of Brazil and Russia could tumble, because of the fall of the price of oil. Chinese and Indian stocks look like a good investment, because of the growing economies of the two countries.

Oil is set to reach 30 USD around June, July 2017. The global economy is just too weak. I forecast the global GDP will grow by around 3.2% in 2017.

Gold has further to fall. Gold could reach 1050 USD before it rebounds.

I personally like US technology stocks. The mobile, artificial intelligence and cloud boom are set to drive the sector higher. The technology megacaps Apple, Google, Microsoft, Facebook and Amazon should outperform. I like chipmakers like AMD, NVDA.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed in the blogpost and posts on social networks(Twitter, LinkedIn etc.) are the author's and they in no way express the opinion or official position of Bulgarian National Bank!

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