It’s look to me that equities markets are all too high for investors to get in at the moment. Its look trump rally is over now and we may some profit taking from now specially in Nasdaq.
The Fed would face a difficult choice between keeping monetary policy loose to support demand and tightening to put an on inflationary pressure; it may become the object of political pressure in either scenario. With these risks, will act as a break on any market upside.
If growth picks up too quickly in 2017, the Fed will have to become more aggressive with the pace of interest rate hikes. Higher U.S. interest rates and continued low-interest rates in other developed countries like in Europe and all will likely lead to a stronger U.S. dollar. U.S. dollar strength would pressure overseas profits and create a headwind for emerging market economies. On the same side the higher dollar also effect the valuation on stocks putting more break for investors.
It’s always advisable to do more research and be more patience before you jump on any markets.
As I have always said, losing opportunity is less costly then losing money in this business. There will be plenty of opportunity for discipline traders.
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