long-term view

I have allocated all in equities.

I have seen improvements in global economies and I've been advised that the top 2 powers will play by the rules:

Yellen must see global growths before delivering a rate hike.
Xi must keep a fair level playing field in regarding to export markets.

I hopefully don't see any volatilities in the next 3 months except for the war crisis (which is good for oil) and renew strength of USD.

Is US economy really that HOT in term of financial stability?

I don't know much. Perhaps Quanyum should help me out.

1. The looming threat of a rate hike has been put corporates, consumers and investors sidelines.

2. The US bank "stress test called Base3" leaves Banks to conserve capitals more than to create liquidities.

On 23/9 Government issued 13 billions 2yrs treasury notes.
Ratio of bid was 2.87 the weakest demand with 22.01% bought by fund managers, foreign central banks ands other institutions.
Ratio of bid in August was 3.50 _ 43.55%

The Fed projection has to tighten this credits leaving a stronger USD in order to service the WAR crisis and lingering GFC 2008 crisis.

The BASE system will be in FULL FORCE from 2019 onwards.

Q's
a. How to lift inflation in the present of tightening credits which means to disencourage spending.

b. Are we in a serious deflationary whereas global economies are loosening credits in the hope to encourage spending which will lead to stronger demands and to prop up assets price hence GROWTH and INFLATION.

So what the Fed has been doing that is to go against theory.

3. US shales do need more capital to pump out more cheaper crude.

University student bonds are rated at JUNK by standard@Poor

Are US housing fully recover?

Are they the looming threats that why the Fed is in ALERT mode.

In the case of US shale drillers. The acreages are belonging to the shale drillers. Is that right?

It's different in the case of AU. The acreages are on lease in a period of 4, 8 or 12 years. After that the LANDS must be fully rehabilitated if in case the drillers are out of business.

AU can afford to wait because they didn't spend much or not at all to find out cheap og products.

But US drillers must SELL their acreages in hard times before they become the BANK's assets in case of a default.

If and If this is what the Fed worrying about then they MUST loosening more credits. Why tightening.

Well AU shale drillers are in better shapes but I'll put all in CASH if I see some more US shale drillers are in volunteering administrations.

USD are in charged but It'll be weaken if I see more growths and more demands in which global economies are doing the RIGHT things.