Now that the dust has settled post FOMC and traders begin to close out positions ahead of the run in to Christmas, here at FXstreet top traders and analysts are discussing what themes will continue to make headlines for financial markets in the coming year.

Issuing his forecasts for 2017, Harry S. Dent Founder, Dent Research, live from Florida explains that there are not black swans as such, there are cycles affecting the economy. Joining the discussion is Yohay Elam, Analyst and Founder of Forex Crunch, live from Barcelona.

Key Quotes

"If Trump "walks the talk" with his plan as the market is pricing in, the Fed will have to raise rates several times anyway. Two rate hikes is my base line."; "As expectations for Trump’s fiscal stimulus rise, the USD could make another push but a potential disappointment from Trump’s true colors could trigger a bounce before this currency equilibrium is reached."- Yohay Elam

"That rounded-top pattern formed between late 2014 and November 2016 now looks to be a long 4th wave correction that’s moving into a classic final 5th wave “blow-off” pattern. The market is totally buying Trump's promise to grow the economy 3% to 4% sustainably again. The problem is that this is demographically impossible: aging economies cannot grow as fast as younger ones. At this point, I can only offer a guess. This market is completely unpredictable and irrational. I recently just saw a sentiment indicator for Wall Street bullishness/bearishness that suggests stocks could go up as much as 20%.
My best guess is that this rally peaks somewhere between late February and early March or into mid-May,at the latest. The Dow could go as high as 21,500 and the S&P 500 as high as 2,500." - Harry Dent

 

 

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