S&P, time to be careful now!
Note: Our price target was hit on 03.11.2016
Surely S&P put a smile on investors’ faces recently. So is the positive trend going to carry on?
Unfortunately the answer will be NO. The positive employment rate increased the expectancy of another interest rate hike. Elections are approaching; hence remember the golden rule, “Markets don’t like uncertainty”.
We are expecting an almost 4% drop to the 2090 – 2100 level. At this point, the market may rest a bit with minor spikes. Although it wouldn’t be a surprise to see it lower within the 2000s very shortly.
This cannot be considered as investment advice.