Savvy Financial Market Participants Have Gone To Cash

$JPM

Financial market strategist warns of a new global market crisis on the horizon and recommends moving portfolio assets to cash.

He said stock market valuations worldwide are so overextended that they will need to fall 38 to 50% before they offer a compelling bargains.

Participants began exiting the stock and commodities market in October and December of Y 2014, the major turmoil that began last month has only just begun, and that equity markets could fall much further, convinced that we are nearer the beginning of this process than the end.

There is a recession every decade between the 6th and 8th year and we are due ours now.

Other experts have warned of recession too.

“Current levels of recession risk predict below-average returns on equities and widening corporate spreads,” JP Morgan (NYSE:JPM) economist Jesse Edgerton wrote last Wednesday. “At face value, these forecasts would suggest that asset allocations should begin to shift away from equities.”

Stay tuned…

Paul Ebeling

HeffX-LTN

 

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