Interesting take from Bill Ehrman @ Prosperite Fund
key takeaways
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The U.S. has again become the beacon for positive change and will be the engine for global growth.
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.....we expect that the market multiple has peaked for the cycle as interest rates rise. Second, we expect that earnings estimates for the S & P, and especially the reflation beneficiaries, will be revised significantly upward giving upside for the market as a whole.
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Investors still remain caught having significantly over-weighted bonds in their portfolios while under-weighting stocks. Digging deeper, bond investors have lengthened their maturities over the years as the short end earned virtually nothing while stock investors over-weighted defensive and yield stocks. That is a losing hand on all counts in a reflationary environment.
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....stay long the dollar and consider owning industrial commodities.
As always read, take notes and make your own decisions.
Submitted January 06, 2017 at 10:46AM by freecashflows http://ift.tt/2jjnIcx
