Buy the US – sell the rest.
I have warned against investing in Europe or indeed the “Emerging Markets” for the last year.
Now even the most suave PC Speak cannot hide the threatening reality:
– International trade volumes are not robust. They have turnied negative for the first time in 10 years.
– The World Trade Organisation is cutting its global trade forecasts.
– The Baltic index is close to its 20 year low.
– The Purchasing Manager’s Index falling in the US, has turned negative in Germany, Japan and China.
These trends imply a world wide decline and we are not immune to world trends. So expect the FED to hold rates low to underpin our economy and keep it buoyant for a little longer.
Have a good day. James