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!

The statements, opinions and projections made in this writing are for informational purposes and are my own.  They do not represent the views of my broker/dealer.  Additionally, this writing does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by me or my broker/dealer in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction

The information contained in this writing should not be construed as financial or investment advice on any subject matter. This writing is not published for the purpose of utilizing the information for short term trading or long term investing in stocks, bonds, ETFs, mutual funds,currencies, indexes, index or stock options, LEAPS, and stock or commodity futures. I expressly disclaim all liability in respect to actions taken based on any or all of the information on this writing.  Seek the personal, face to face guidance of a registered investment advisor before entering any trade or investment.  Anyone who trades or invests based on the information in this commentary does so at his/her own risk.  

Warning!  you can lose some or all of your principal (money) investing in stocks, bonds, ETFs, mutual funds, currencies, indexes, index or stock options, LEAPS and stock or commodity futures!