Sunday, May 3, 2015

Head Fake or Signal

Copper, German Bund yields and the US Ten Yr yield surged in tandem on Thursday.  This is either the head fake of all time or a clear signal that the global economy strengthening.  I've been more bullish than most on stocks and the global economy and this is just another signal we are finally on our way out of the global economic malaise.  

Europe and Emerging Markets will continue to outperform US equities but the S&P 500 will still be at all time highs by the end of year.


(Click on chart for larger image)

In the meantime, we're still in for a bumpy ride as seasonal factors will keep the market choppy through the first part of summer (at least) and issues regarding Greece and ongoing fears of when and how much the Fed will raise interest rates still grip the market.  All these, in my opinion, are unwarranted concerns.

Have a great week!


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