“Buy low, sell high” is what investors would like to do, but many “Sell low, buy high”, which is what they should not do. This Newsletter recently recommended selling as opposed to buying. The last week has seen even higher highs in the US markets.
The next meeting of the IMF (International Monetary Fund) will be on 21st to 23rd April 2017 in Washington, D.C. The US dollar is overvalued in relation to other currencies, and therefore it could be a good idea to sell US dollars just as this Newsletter has recommended selling US equities now since the prices are very high and a correction to the bull market is overdue. It is unlikely that this cycle will last to the end of 2017. One could then reenter the market after the correction.
As myself and all other business leaders know, when you step away from work you never really stop thinking about it – even when hurtling down an icy ski slope in the Swiss Alps.
The Dow has gone over 20,000, a historic high. As of 10th February it was at 20,269.37. The SPX was also flying high at 2,316.10. “All is well that ends well” can certainly be said for the past week`s performance in the markets. As is well known, however, history and past performance are no guarantee for the future.
The last Newsletter predicted the arrival of the Renminbi in grand style and the penultimate number underlined the bond rout and the fact that the US Dollar is overvalued. The huge American national debt has been repeatedly mentioned as well as the enormous US trade deficit.
