What`s next in the stock market?

Take a look at the Silver. Now trading at $17,50! Down another 1,17% only today! Gold is also in a red territory, trading at $1,210,80. Down -0,71% so far today. Copper is trading at $303,95, while Crude Oil (Brent) is trading at 97,20.

This is not what many investors expected. Many was bullish on gold and are still buying with both hands, but the precious metals is declining every day. Yesterday, we saw good economic data. Housing prices are up in the best market in 22 years. What will happen next in the market. Please be sceptical about everything I say, but as an investor I need to predict the market.

SPX Sept 14

Here are some thoughts: The U.S economy can continue to grow with inflation subdued and the interest rates will probably increase next year, but in a gradual pace. Stocks will probably be supported by higher earnings instead of higher valuations. If so, the S&P 500 will continue to go up to about 2,250 next year.

But what if the stock market goes up like I mentioned above and the valuations melt up in the prices of the stocks when the growth remain the same, and at the same time, the dollar keeps going up and remain strong? Then a lot of capital will flow into the U.S market again. Fed will slow down its pace of monetary normalization, and companies support higher stock prices with more share buybacks.

Maybe this is the end? This is the top, and it stops right here. It is the end of the bull market. It is a slowdown in Japan and in Europe and China has a housing bubble that will burst, and all this will stop the whole global economy.

It`s many outcomes, and that`s why it is important to trade what you see, not what you belive. Expect the unexpected, because you`ll never know what`s gonna happen out there, but when it happens, it happens fast.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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