The boss of HML has released his new predictions. He has a great recent history. Anyway, here's a summary:
It isn’t our favourite market, but people kept asking so our response is that we see the ASX going higher.
The Kospi, the Hang Seng, the Nikkei, the DAX will go up. The FTSE, the NASDAQ 100, the CAC will rise less.
Global equities go higher by Christmas and then go way higher over the next couple of years with limited volatility.
People will keep warning you about debt, interest rates, wars, etc. It won’t matter, equities will finish severely overvalued and we aren’t even close yet. Right now, this is two people having a quiet glass of wine; these markets will finish in a veritable orgy. I look forward to it.
In currencies, the Aussie dollar flattens out around here, we are neutral.
The Euro and the Pound keep going higher, but that was a great call at the start of the year, less so now.
Emerging market currencies are the ones to chase - the Indian Rupee, some of the Asian currencies and the South African Rand all surprise on the upside as markets continue risk on and central bankers continue to reflate.
Rates stay ultra low despite the rhetoric, but real estate gets killed anyway.
The Republicans deliver on tax reform, but the market is disappointed anyway and the US dollar continues falling as the Fed hesitates on rates.
Gold is the dark horse, demand surges out of China and India and speculators take over crunching tight supply and prices soar.”
