The Prospects For Asset Prices: A Very Dangerous Moment
Posted August 23, 2015
Last week the global economic slump caught up with Wall Street. Global stocks joined global commodities in a broad-based selloff that took the Dow Jones Industrial Average – and many other indices around the world – into correction territory. By market close on Friday, investor sentiment was verging on panic. What should investors expect next week and during the weeks ahead?
In the new Macro Watch video, uploaded today, we consider the outlook for equities, bonds/interest rates, property prices, commodities and currencies.
Will panic selling resume when markets reopen on Monday?
Where will the S&P Index be at the end of 2016?
Will the Fed hike interest rates or launch QE 4?
Will US home prices continue rising?
How much further can commodity prices fall?
Is Dollar Strength about to give way to Dollar Weakness?
The Outlook for Emerging Market Currencies
The Outlook for Gold
China’s bubble is deflating, commodity prices are crashing, and the currencies and economic prospects of the commodity producing countries are being crushed. Now, the sudden plunge in US (and global) stock prices is destroying trillions of dollars of wealth and undoing the positive wealth effect that had been responsible for much of the (weak) economic growth that had been achieved during the last year. The global economic bubble is deflating rapidly.
This is a very dangerous moment.
If you are a Macro Watch member, log in now and watch The Prospects For Asset Prices to see how much worse things could become if policymakers fail to act swiftly.
If you have not yet joined, click on the following link:
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You will find more than 17 hours of video content available to watch immediately, including two video courses:
1. The Global Economic Crisis Explained, and
2. How The Economy Really Works
A new Macro Watch video will be added approximately every two weeks.