How vulnerable are equity markets?

Very.

As trend forecasters, we stay focused on facts. We track the current events that form future trends and make our forecasts based on qualitative data, and not the static that drives business news cycles.

How will markets perform?

It’s not about trade wars and tariff threats. It’s not about porn stars or playboy models allegedly having affairs with the president years ago. It’s not about Russian collusion in the 2016 elections, as the media would lead you to believe.

It’s about overleveraged, overvalued equity markets that have been riding waves of profitability off of stock buybacks, Trump’s generous corporate tax plan and historically low interest rates that have increased their profits and stimulated the economy.

The Trends Journal was the first magazine to call the Trump Rally in November of 2016; the first, in December 2017, to forecast a market correction would occur in 2018; and the first to declare the end of the Trump Rally in February 2018. TJ

TREND FORECAST 

The nine-year bull market was built and sustained by historically negative/zero/low interest rate policies and unprecedented Quantitative Easing monetary measures.

As noted, the Federal Reserve is expected to raise interest rates two more times this year and three in 2019. Thus, we forecast that with rate hikes hitting when major markets, such as China’s and Europe’s are slowing – and with global debt at an all-time high – a ticking economic time bomb is set to crash economies and markets worldwide.