Market Outlook - March 2017
Chief Investment Officer of John Bridgeman Limited, Stuart McAuliffe, states:
“We made some decisions last year that played out very well, resulting in an increase of over 100% on our trading accounts in six months. While anything can happen in the market, we expect to even better that achievement this year. As a result, many have asked us what we think will happens this year.
While we cannot give you all of our proprietary models, we can tell you what we think will happen and where the action lies:
- Chinese stocks go on a mid to end year tear beating all developed markets, soaring over 20%.
- The Mexican Peso continues as the best performing currency in the world doubling its returns so far this year (approximately 12% so far).
- Reformist Macron wins the French election and French stocks soar taking European banks and insurers with them. A 20% ‘up year’ in European stocks crushes bears.
- Bunds (German 10 year bonds) and other safe havens get truly mauled (they had it coming).
- Commodities continue to rally into year-end after a dip right now, confounding critics.
- The British Pound becomes the best performing developed world currency from here, closely followed by the Euro rallying 10%, again shocking forecasters.
- The NASDAQ 100 is the best performing US stock index.
- Trump economic policies fail to deliver for most of this year, but all come together by the end of 2017 and push markets higher into year-end and the bull continues throughout 2018. Bears tell us daily that this just cannot be – but we believe it is.
- The ASX is an average performer – we think you should focus on global funds.
- If you think you are long enough stocks, you probably are not. If you are worried you are too conservatively placed, well, don’t say we didn’t warn you.”