- Switzer Report - https://switzersuperreport.com.au -

I’m bullish on stocks and I’m not alone

It won’t surprise you that I’m bullish on stocks this year but what do other experts think? My views are driven by the fact that Donald Trump can’t have a recession and Wall Street crash before the end of 2020, which will bring the next US election. He has to cut a trade deal with China and the Fed minutes released overnight confirm that Jerome Powell and his Fed will be “patient” with interest rate rises in 2019.

It’s why the S&P500 in the USA has rebounded 9.9% since December 24. And it’s why our market has comeback 6.3% since December 21. Remember, we did not fall as much as the Yanks and that’s why our buyback of stocks is less impressive. Also, we have local headwinds, which I talked about on Monday, including the Royal Commission recommendations and how they might affect bank stocks and the upcoming election, with Bill Shorten a raging hot favourite to win with a bagful of anti-investment policies.

Sven Henrich, the respected technical analyst from marketwatch.com, is in the tentatively optimistic camp but points out that if a Trump trade deal fails to substantially excite Wall Street, then effectively the current rally is a sucker’s rally.