Happy New Year! It’s hard to believe that we’ve put all the highlights and lowlights of 2014 (which I talked about last week) behind us.
So where are we headed in 2015? What surprises might this brand new year have in store for us? And how can you navigate them properly (and profitably)?
That’ll be the topic of my first gala Safe Money Report issue of the year. It’ll hit subscriber inboxes — along with specific investment recommendations designed to help them capitalize — next Thursday. (To find out more, click here.)
But to briefly touch upon some of the broader concepts that should drive market action in 2015, and that I’ll cover …
First, it looks like a year that could bring large profit opportunities — possibly even a blow–off or euphoric high. But with those kinds of moves come huge risks — like the risk of a nasty payback period in 2016.
Martin talked about this scenario in a piece a few days ago and it’s very plausible to me as well. Good times can’t last forever, especially when valuations get increasingly stretched. But while they do, you owe it to your portfolio to try to make the most of them!
Second, the Global Money Tsunami shows few signs of letting up! Look no further than the currency markets and you’ll see signs of money fleeing weaker foreign markets, and pouring into ours.
|Fundamentals for further losses for the euro vs. the U.S. dollar remain in place.|
We just set new multi-year lows for the euro … new multi–year lows for the Japanese yen … and new multi–year highs for the U.S. dollar. While those moves can get extended at times, and corrections are possible, the monetary policy outlook between the U.S. and foreign countries is very different. So the fundamentals for further losses in currencies like the euro remain in place.
Third, the “Slow growth there, stronger growth here” movement is leading to great opportunities in companies that are largely focused on domestic businesses. Think industries like utilities, consumer staples, health care, and more. That’s where I’m searching for opportunities — and enjoying some success with multiple Safe Money positions trading at or near record highs.
Fourth, some of the greatest bargains in years are being created in beaten–down sectors like domestic energy. Bottom-fishing in attractive, already–clubbed stocks there could pay off handsomely in 2015 and beyond!
Fifth, major risks could derail the market later in the year and into 2016. The European debt crisis, which keeps flaring up every couple of months, most recently in Greece. Russia’s flexing of its muscles in eastern Europe and beyond. Renewed turmoil in Libya and the Middle East. They all threaten to up–end the market’s steady progress higher.
Sixth, we’re getting closer and closer to a “Bloody Wednesday”–style event. I’m talking about the moment when we get an unforeseen or disruptive change in the interest-rate and money markets, causing massive volatility across the board. The warning signs are there, if you know where to look — and I recommend you heed them!
It’ll take solid, independent and well–researched advice and guidance to help you navigate all these cross–currents, as well as some of the others I don’t have room to go into here.
So again, Happy New Year — and get ready for a dynamite 2015!
Until next time,