The Week Ahead: Is Global Investing Worth The Risk? |
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September 11, 2016 |
September 2016 Bond Updates
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With only data on the services industry last week the markets fixated on Apple's product announcement and for most of the week did not pay as much attention to the upcoming Fed meeting as I expected. On Thursday the ECB decided to make no policy changes which may put them off until December.
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This was a bit surprising since inflation in the Euro zone (see chart below) is still low and well below the target zone of 2%. Many US economists and many of the know nothing representative in DC continue to criticize not the original efforts to fight the recession but fight all easing efforts. They apparently do not understand that there is no clear way to defeat deflation. If they look at what has happened in Japan they should be worried.
The market's opened Friday with strong fears of higher rates which pushed the major market indices down 1% by mid-day? There are many that have been waiting for a reason to sell and this may turn the investor sentiment even more negative on stocks.
According to AAII there was little change again last week in the sentiment of individual investors. The bullish % was up 1.1% to 29.7% while the bearish % dropped 3% to 28.5%. The VIX has stayed low until Friday when it rose sharply and two consecutive closes above 15 is needed to suggest that a bottom is in place.
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View more at: http://www.forbes.com/sites/tomaspray/2016/09/10/the-week-ahead-is-global-investing-worth-the-risk/
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