BarroMetrics Views: The Start of a Heavy 25 Days
I shall be leaving for Sydney on March 25 and will be in Hong Kong on April 19. In that time, I shall be giving five presentations, two in Sydney, three in Singapore. The two in Sydney and one in Singapore are private events. The remaining are public events. More about those in the coming days.
But that was not the title refers to.
What I was referring to there were the European indices, in particular the Dax. QE in Europe has only just started. Since the S&P broke out in 2007, we have seen about a 33% rise. We may see a similar rise in the DAX. It’s now only a question of finding an appropriate level to enter where the reward:risk is appropriate to your trading system and capital.
Why Dax rather than other EU countries?
Because Germany has the strongest economy.
How about the S&P?
QE is rather long in the tooth and the FED is facing extrication problems. If I am going to invest in indices, I’d rather switch to a country where QE is only beginning.
What are risks?
Two. Greece may raise its head – it’s simmering in the background. And, the proverbial Black Swan that may cut the sentiment that Central Banks can keep stock markets afloat indefinitely.