Eye on the Ball, from Ralph Vince
While everyone is in a lathered-up blather about executive orders and screeching, we gotta keep our eyes on the ball. I for one can't get sucked up into political noise when there's money to be made.
Nearly everyone I speak to is looking for three things:
- A pullback in equities.
- Interest rates have bottomed and will now approach more historically normal levels.
- Volatility is bound to increase in the coming months and perhaps years.
And the degree of which I am hearing this makes me quite certain none of these are in the cards. Tomorrow may be a great day to sell equities, shorter term, on any strength. The month of February should be, by my reasoning, a gentle, sane chop with an upward bias, in a bigger, grander, continued bull market. As far as rates go–I don't know, but I am surprised at the lopsidedness of sentiment regarding #2, above. But as the late kid from another (classier, as it were!) suburb of Cleveland used to say, "Don't fight the Fed."
Comments
Jay Bower on January 30, 2017 5:37 pm
I follow on #1 & #2. #3 seems very likely to happen, though. What basis other than rudimentary contrarianism makes you think volatility will drop?