In the first month of the year the Dow Jones went up by 0.5%, the S&P closed 1.75% higher and the Nasdaq ended an impressive 4.2% higher. First the 20,000 points target in the Dow Jones was hit and shortly after also the S&P hit its 2300 target. The S&P future didn’t hit this target yet though. We expect this to happen coming week.
We will see higher rates caused by the market and FED. The debt will continue to go up, so markets are still going up till now. Normally after 2 or 3 interest rate hikes, you should be very worried. Historically on the fourth interest rate hike, you should run for the hill. It will give a lot of unrest in the equity market. The US Dollar will be a safe haven at that moment. China will slow as well because its customers the US and Europe are slowing. China will see bankrupties, which will surprise people. Trump is really starting a trade war right now, which is bad for everybody. Trade wars always led to bankrupties, but Trump doesn’t seem to get that and doesn’t hold back starting one. It is not different this time, but still a lot of people think they are smarter than the people in history.