Loading ...There is little doubt that the US stock market is about to experience a sell off. In fact, most investors would be absolutely amazed if it did not happen. Will the sell-off be controlled or in panic, that is still to be seen.
I expect emerging markets to sell-off worst than the US market. Not because their economy is worst but because they just experienced a huge currency strengthening and stock market rally. The returns on equities in foreign markets the last 6 months yielded over 300% in many cases. The US markets on the other hand, had a nice stock market rally but its currency has been driven to historically low levels.
Either way, gold and fixed assets are the safest investments the next 3 to 6 months. No point on overpaying for stocks that is ridiculously overvalued. So many companies are technically insolvent and worthless, yet, they are trading like they are the greatest IPO to ever hit the market.
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