Stock Market Analysis

Sunday, January 03, 2016

My 2016 Forecast...

Happy New Year!

Welcome back from the weeks of holiday! I hope you guys had a great time even though I know the only thing holidays like this does is make us less want to work hahaha! With all the holidays behind us at last, its time to put our focus on the market once again!

Its the dreaded 2016 at last. The year which many analysts, myself included, are expecting to be extremely volatile due to the US Presidential Elections as well as the widely expected economic crisis cum stock market crash. So, how are election years typically like?

Well, looking at the past 15 years, there were as many negative years as there were positive years during Presidential Election years with 2 positive years and 2 negative years. As such, there isn't a significant pattern to rely on even though the year after Presidential Election, which is the first year of a new Presidential term, tends to be a positive one. Another pattern we could look towards for guidance for the year is that the year following a negative year tends to be a positive one too. However, this was true only for the non-market crash years. In fact, the 2 negative Presidential election years over the past 15 years were market crash years too. As such, it seemed to suggest that market crashes override any discernable stock market abnormalities.

So, the question really is, is this going to be market crash year?

A lot of analysts, myself included, think so. In fact, I think 2016 is going to spark a global recession. The global situation is becoming increasingly unstable with the bubble popping in China, European centrals banks are running out of bullets and things are not getting any better, US economic data also revealed pre-market crash patterns. Most important of all, the market crash timer says so, according to the cyclical nature of the economy and stock market, its time once again for toxic waste to be cleared from the global economy and the time is right about this year.

Even though I am very pessimistic about the outlook for 2016, this doesn't mean I will stop profiting which ever way the market decided to go to. That's the magic of options, allowing us to profit in either direction regardlessly. Profit with me now in the new year with the last hours of my 50% year end sale now! Check it out at Mastersoequity.com!

Here's wishing everyone a very profitable year ahead!

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