Friday 12 June 2015

Financial markets in next 18 months

Today is 12-June-2015. How will the financial markets behave in the next 18 months. Here is my prediction.

The FED is tightening. So stocks will fall during the next few months. Once the stock market has fallen significantly, there will an cry for next round of QE. Central banks all over the world will release trillions of dollars. This will cause a spike in the price of stocks, gold, silver and commodities. Inflation all over the world will rise for essential commodities like food. Prices for non-essential products (Mobiles, TVs, etc) will fall, because people are spending more on essential commodities.
To profit during the next few months short the stocks; or remain in cash to avoid losses. To profit after the stocks have crashed, go long stocks, gold and silver.

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