Don't Poke The Bear
Disclaimer: Your capital is at risk. This is not investment advice.
AAA: August Edition;
Since mid-June, World equity market indices have been rallying over hopes that the US Federal Reserve would ease up on rate hikes. However, the Fed’s speech at Jackson Hole made it clear this will not happen anytime soon. Investors have got the message, and the equity rally is likely to evaporate giving way to further falls. The bear market is not over. Expect rising rates, recessionary growth, falling wages and earnings. Stock markets have not fully priced in these events - it will get worse before it gets better. The strongest trending assets in the AAA Model are still Commodities. We hold them but are aware that some are very volatile thus prone to large corrections. Hang on and buckle your belt – there’s turbulence ahead.
