Top Five Technology Stocks, Global Economic Growth, US, Russia Stocks!

Dear Reader,

Microsoft, Google and Amazon posted blowout earnings. The Nasdaq technology index is on a tear, rising like crazy. Megacap technology stocks like Apple, Alphabet(Google), Microsoft, Facebook, Amazon may well be overvalued but they are earning staggering amounts of money. This time the possible dot com bubble is smaller, because the large capitalization stocks are making loads of money(profit), not just eyeballs on the site like in 2000.

But the top 5 technology stocks' valuation is getting ridiculous. The top 5 tech stocks amount to more than 3 000 000 000 000(trillion) USD in market capitalization! This is simply staggering. This time, however, the earnings and revenue are concentrated in the 5 aforementioned stocks.

I envisage a correction in the main US stocks indices  S&P 500, Nasdaq and DJIA of circa 30% in the next two three years.

Catalonia's secession from Spain is going to make the yield on the Spanish government bonds reach 3.00% soon. The European Central Bank will go on buying assets for longer than expected. The ECB could end up stifling the bond market in the eurozone and indirectly the equities markets in Europe. If the ECB ''achieves'' this Europe will end up with a Japanese scenario - low inflation, low or negative growth.

Otherwise, I believe global oil stocks are undervalued. Oil measured by WTI oil and Brent oil will soon establish a range between 60 and 75 USD, according to me. Russian and Brazilian stocks are therefore undervalued.

Otherwise, I believe the global economy is about to accelerate. Global GDP growth year on year will reach something like 4.1-4.3% in the next three to four years. Credit is about to grease the economy. Credit growth is to rise significantly. Global banks will benefit. Global banks stocks are value stocks at the moment and I think they are undervalued.


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Kind regards,
Petar Posledovich