A rather simple, but accurate look at today’s market environment. Unfortunately, the guy backtracks by suggesting we won’t see any sort of a decline in the equity prices over the next 12-18 months because the FED will not raise interest rates. Due to the strong dollar. In other words, continue to BUY (according to him).
I disagree. I won’t go into details, but my mathematical and timing work suggests that the FED will raise rates in June/July. Further, the dollar is topping out here and should reverse soon. This supports the FED case. And as soon as investors get this wake up call, expect rapid multiple contraction, just as described in the video below.
