Remember this chart?
First, I would like to bring some attention to this earlier post. Where I specifically called for a drop in equities a few weeks before the major selloffs in August/September of 2015. More importantly, I also said prices wouldn't stay down there. I did turn out to be right about the sideways movement we've seen since then, but wrong about why. Because as the Fed raised the funds rate one time last December by 25 basis points (causing the early 2016 selloff), central banks around the world were doubling down on their stimulus programs -- much to the benefit of US markets.
|20% of the SNB's foreign currency reserves are in equities |
up from 17% last year and 10% in 2010
So as of now, I don't see much downward pressure on equities from the Fed (neutral), or foreign central banks (neutral/positive).
With that being said, I would actually have to recommend buying US equities for the year 2017. More specifically the SP 500 at around the 2180-2100 level, over the next few weeks, with a current upside target of 2250-2270 into the year 2017 (and beyond).
|Could the ECB start buying stocks?|
As of right now, Hillary has a 60% chance of winning, but this Tuesday's debates could move things. Getting into a position now before the election could prove a good risk/reward, considering the likely outcome. But don't forget, since this an event with a known date, you can always hedge your positions with an appropriate options strategy.
Lastly, as a side note, I really like bitcoin's technicals right now. Best, riskiest investment you can make for the long term. I would own a few, as the upside potential is huge (especially when you consider that NIRP will likely make its way to the US, sooner than most think).