Weekly Newsletter from 25-29 July 2016
Watch interest rate because low rate environment will end in developed nations (USA, EU and Japan)
Dear Members,
Finally, after 19 months S&P was able to break upper side wall of 2117 level. I am finally a bit relieved because since the last five years (From August 2011) I have been constantly recommended investors to keep investing money in the market, and so far investors have earned 42 percent in S&P if they have just invested buying INDEXES because S&P went up 42% from 1100. Our theory has been able to guide us clearly on the move in S&P, and what more movement is yet to come. From 2011 we have been targeting 3200 and since then we never changed this target even though many uncertain scenarios developed in between, and we still believe that S&P will hit 3200 in the next 18 months.
Last week CNBC and Bloomberg commentators were saying that no one saw S&P gaining 40% in 2011, and that no one was confident about stocks early this year when everything was falling apart. S&P gained more than 352 points from 1812 to 2168 in the last six months from its lows of 12th February.
Most of you are our longer term members, many of you have been subscribing to our services for over a decades or more, and most of you are aware that most of our predicted longer term price targets always get fulfilled in all different financial area like metals, energy, currencies and indexes. I will feel complete if our target of S&P hitting 3200 gets achieved be the end of next year.
I know that limited time is pending and S&P has to run like crazy to achieve our predicted target but we are very confident that it is going to happen even though many see so many hurdles ahead such as USA elections, the unsecure environment with security issues, and BREXIT. Also, many experts and economists are sceptical that the market will remain higher in a low interest rate environment.
This week USA and JAPAN will announce monetary policies, both meetings will be very important. FED won’t hike rates, and there won’t be a press conference after the meeting so investors will expect less volatility in the market but surely still smart investors are expecting at least two hikes in the pending months of 2016. Dollar is holding value very tightly against of most of the other currencies though so far it has been struggling to move above 98.00 level in 2016. We expect dollar to remain around the current level and it may get weaker in the coming months.
On the other hand, Japan will announce monetary policy on Friday, it is a very key meeting, and global investors must watch this rate decision and monetary statement. Japanese Yen has been holding value very well after bottoming out early this year at 0.8200 level. It went to 1.0000 par level last month during Brexit but gave away some value in July.
More stimulus package from Central bank can push Yen lower but we don’t see Yen going back to its lows of 2015/16.
Globally everyone will be observing the USA elections. Many believe that Trump could be a very unpredictable President, so surely some concerns are there amidst investors as many are expecting uncertainty in the geopolitical environment. There is no doubt that international investors are divided among Trump and Hillary as next President of USA, some people are nervous with Trump behaviour including me, and on other hand few feel less trust in Hillary, but out of 10 people I talked yesterday, 6 said that they will still like to see Hillary as next president because they want stability in market and globally.
I watched Trump’s speech at the GOP Convention; He seems very exciting but what he portrayed about the current situations in USA like USA in worst conditions which is not true at all in my opinion because most people believe that USA is far more stable now than it was eight years back when President Obama first took over the office. Most people are less worried as compared to 2008/9 when people started losing jobs and homes, so there is no doubt that Obama and his team have done amazing work handling the USA economy. My opinion is very pro OBAMA, because I believe that he worked hard and made all the efforts to bring USA back after it had fallen apart in 2008/9. My opinion is that he has done many great things like by going to CUBA and Hiroshima he gave the message of one world and humanity. In my opinion he is a great man, great human soul and a humble politician in the history of modern politics. I believe that history will remember Obama’s legacy. This is purely my opinion and I don’t want to upset any of my Republican members’ sentiments. I respect if someone has negative opinion about Obama because we all have different perspective. I already predicted last year that Woman will be next President of United State of America.
Anyways, let’s come back to the financial market; apart from FED and Japanese Monetary policies, there are a few key economic data that will be released this week in USA, UK, and EU. Also many key tech companies will announce earnings which could add or shed a few percent in index. Investors will be watching AMZN, GOOGLE, APPLE and many other stocks earning very closely.
Last week global markets performed very well, but USA market did exceptionally well and we expected USA market to outperform and we still believe that USA market will remain the leader. Chinese Yuan is holding value but is not able to gain which is supporting Shanghai Index and ADR’s.
Last week dollar traded firmly, commodities lost value and Indexes moved higher. This week is very crucial for markets, currencies and commodities and let’s see what astro/Geo Cosmic/wave of nature analyses say.
Here is weekly newsletter for all major markets from 25-29 July 2016
Click here to subscribe http://www.mahendraprophecy.com/weekly-newsletter-subscription.php