Sell Stocks Now – Russia & Fed Stacked Against Us
In Part I of our promised two-part stock market forecast published in early June, I said four important obstacles had been removed that had held stocks up through the first five months of the year. I said an imminent short-term rally was likely due to the newly cleared path. However, earlier this month, I updated my call in an article entitled Warning! The Fed Could Kill Stocks this Week, where I said one of those factors - specifically market expectations about the Fed and interest rates - was re-emerging and was capable of stymieing gains the rest of the year. I’m confirming through this report that the factor will not go away, but rather build in its importance with time like a brewing storm that will rain down against capital gains achieved year-to-date. Meanwhile, a second factor has reemerged to fight stocks, tensions with Russia. Therefore, I’m suggesting investors begin to sell the broader market here, ahead of the storm, and divest holdings in the passive market ETFs, especially the growth biased SPDR S&P 500 ETF (NYSE: SPY), and also in the SPDR Dow Jones (NYSE: DIA) and PowerShares QQQ (Nasdaq: QQQ). We will have a stockpickers’ market to navigate henceforth. See the full report here: Forecast Part II: Sell S&P 500 Passive Interests – This Market is for Stock Pickers.