2016 FEBRUARY

STOCK MARKET IN QUESTION

Good day

The question has been posed is the US market headed for recession? To begin with the banks are in question. The development of the decoupling financial crisis was instigated by financial institutions. led by banks. This makes emerging markets harder to target for more diverse investments. Due to the different beliefs of evaluation. The weak side of currency makes investors optimistic as companies getting cheaper makes them more attractive.
Many argue that the stock markets are headed for recession in 2016 and 2017. The numbers will show that it is fifty fifty verses thirty percent. Why? There are many catalyst within the US Economy that will influence a higher chance of recession. Lets remember that the US has gotten a downgrade in many investment circles. The removal of the punch bowl in market stimulus and most importantly not just a Presidential election but a change in the regime. The markets will feel profit taking as the old out and new investment with the new. Also financial reform  as many will argue has derailed a recovery of the weakened markets or at least help slow it down. As investors are set up for what has happened and if which is highly likely that many policies put in place will be dismantled or changed if you will will cause the avid investors to redirect course.
Now the emerging market scene hold more weight and influence than ten years before. Russian and Chinese are optimistic yet the numbers from these economies are higher than ever. Moving forward over leveraging and emerging market policy will affect US market volatility. Make no mistake about this.
Thank you and have a great day.

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