Matter of Perspective: Often times Equities side with the USD Strength
The past three (3) consecutive months have been a resumption of the overall major trend for equities and particularly the USD. Often times, major sell offs or should we say substantial market correction are part of the market's way to streamline prices and make the market more efficient especially when a major trend have considerably extended its course and projections.
Everything has to do with external factors that may and may not give a clear market direction coming from excessive market price swings that makes market participants drift towards 'uncertainty'. However, leading into June month a firm base for the USD have formed, well supported from US JOBS figure beating expectations and unemployment rate at 3.8%.
NASDAQ As of June 15, 2018
Which simply translates that there's room for economic growth, Value in stocks would accelerate from their corrective price levels. With the US 10 year Treasury yields back below 3%; indeed all three major indices marking a market highs with the NASDAQ at 7768.60, SP500 at 2791.47 and the #DOW at 25405.50 respectively as of June 15th closing levels.
At some point in time between the 3rd and last quarter of the year, there is a higher degree of probability that the market would accept and get used to the a higher yield along side the scheduled interest rate hikes. Exceptional times in US growth would still continue in spite of yield curve adjustments. Other analyst would disagree, the same time that they did when we mentioned the greater probability of the USD strength alongside Growth in Equities.
A Follow Through in all three major Indices moving forward on the
2nd week of June would equally be nice!
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